32. Mortgage rates: Following are interest rates (annual percentage rates) for a 30-year fixed rate mortgage...

32.

Mortgage rates: Following are interest rates (annual percentage rates) for a 30-year fixed rate mortgage from a sample of lenders in Macon, Georgia on a recent day. It is reasonable to assume that the population is approximately normal.

4.750	4.375	4.176	4.679	4.426	4.227
4.125	4.250	3.950	4.191	4.299	4.415

a.	Construct a 99% confidence interval for the mean rate.
b.	One week earlier, the mean rate was 4.050%. A mortgage broker claims that the mean rate is now higher. Based on the confidence interval, is this a reasonable claim? Explain.

Please show your work.

Expert Solution

orchestra answered 2 years ago

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