One measure of the state of the economy is the amount of money homeowners pay on...

One measure of the state of the economy is the amount of money homeowners pay on their mortgage each month. To determine the extent of change between this year and 5 years ago, a random sample of 150 homeowners was drawn. The monthly mortgage payments for each homeowner for both this year and 5 years ago were recorded. Can we infer that mortgage payments, on average, have risen over the past 5 years?

State the appropriate hypotheses and decision rule, (use a .05 significance level)

This Year	5 years ago
613.21	783.31
551.66	498.33
633.4	560.8
703.02	745.84
1158.98	1135.76
1203.77	1342.59
958.4	1003.81
872.57	874.24
1086.69	886.97
692.15	760.52
785.58	819.59
1196.76	1127.73
705.87	614.28
380.99	318.21
964.1	769.98
1025.34	1030.62
726.33	593.46
700.16	731.64
847.21	885.72
767.43	813.06
858.47	732.88
966.11	922.84
501.64	428.1
921.37	801.76
747.42	558.12
993.44	1044.33
872.8	814.49
1006.41	981.71
957.56	862.93
927.7	981.66
791.51	829.34
926.52	937.86
916.45	1022.83
790.54	749.18
1026.06	1053.49
1071.33	1046.71
954.09	838.61
823.69	966.36
973.28	901.78
851.19	879.88
829.46	705.31
845.07	597.36
1150.59	817.73
865.7	687.39
992.31	1136.48
1105.74	1162.46
1098.17	1056.31
949.96	971.49
832.38	723.45
706.99	579.4
776.6	712.53
914.53	919.6
950.93	1000.64
844.96	943.07
1272.33	1177.34
1193.77	1260.44
1192.95	1029.59
889.18	932.37
785.99	891.97
794.99	786.56
1420.67	1359.69
769.54	716.6
905	1051.43
937.82	771.66
837.85	691.59
830.56	862.17
1006.75	1011.87
1014.53	970.39
859.22	740.95
844.19	837.66
653.69	713.55
1036.43	1083.54
936.32	993.66
1067.83	934.16
785.78	734.07
1289.97	1203.78
1019.45	1084
1154.34	1220.97
766	849.81
1064.63	1065.69
1107.34	986.74
1135.39	1038.17
969.32	924.85
679.52	759.79
1306.65	1319.13
882.13	703.69
1156.16	1285.66
1058.55	1130.93
987.55	901.81
1001.2	999.7
1015.94	1183.06
1071.57	1192.89
873.11	831.75
643.56	577.35
1056.94	903.02
882.3	967.83
1006.83	1101.75
835.93	857.67
1161.75	1224.46
1031.69	1102.14
1078.51	1210
692.49	724.34
820.46	824.06
1016.01	969.14
678.78	828.01
1082.32	1095.75
984.96	1006.39
1267.38	1461.02
1022.35	1012.31
753.21	724.78
915.33	959.13
1051.46	979.36
825.76	703.88
1058.28	990.9
891.43	888.71
768.28	882.81
830.71	949.45
1019.65	1041.31
1075.36	998.78
1043.12	929.16
1070.83	1022.38
1027.89	1099.14
1225.82	1170.87
889.68	903.36
735.47	826.83
727.6	588.44
423.58	447.92
1028.21	1188.22
978.63	1132.73
1249.64	1347.06
651.15	623.06
887.56	870.17
1265.12	1217.68
977.6	973.38
696.85	719.89
1009.77	884.88
1148.88	1116.76
989.87	912.95
1024.76	1140.64
825.51	933.2
1137.11	1036.84
934.07	829.58
1005.67	732.09
1164.36	1174.83
1160.31	1231.23
652.57	531.79
1290.54	1257.28
1184.99	1236.76
1132.33	1251.48
806.46	613.17

Expert Solution

milcah answered 1 year ago

The money stock in the economy is a. the amount of wealth accumulating in the economy,...

The money stock in the economy is a. the amount of wealth accumulating in the economy, such as curreney and demand deposits b, the amount of wealth accumulating in the economy, such as money market mutual funds and stocks. c. the quantity of money circulating in the economy, such as currency and demand deposits. d. the quantity of money circulating in the economy, such as money market mutual funds and stocks

Which of the following statement is incorrect? a. A given amount of money you must pay...

Which of the following statement is incorrect? a. A given amount of money you must pay out today is a greater burden than the same amount paid in the future. b. Most of the answers are correct. c. With an amortized loan, the amount of interest increases each year, and the amount contributed to principal decreases each year. d. With an amortized loan, the amount of interest decreases each year, and the amount contributed to principal increases each year. e....

Write a program to help a small company calculate the amount of money to pay its...

Write a program to help a small company calculate the amount of money to pay its employees. In this simplistic world, the company has exactly three employees. However, the number of hours per employee may vary. The company will apply the same tax rate to every employee The program must be written in Java. Prompt the user for the inputs and store the values in variables Must include all the inputs and outputs listed here and perform the calculations correctly...

Sohrab has a job and usually makes enough money to pay rent, but if the economy...

Sohrab has a job and usually makes enough money to pay rent, but if the economy goes bad, he struggles to pay rent and buy food. Which statement best describes his situation? He is not poor He is absolutely poor He is relatively poor He is vulnerable to poverty Which one is Not a potential explanation for business fluctuations? Seasonal unemployment A change in spending A change in Production Saving and Investment inequality which one is the biggest component of...

One measure of the health of a national economy is how quickly it creates jobs. One...

One measure of the health of a national economy is how quickly it creates jobs. One aspect of this issue is the number of jobs individual hold. As part of a study on job tenure, a survey was conducted wherein Americans aged between 17 and 45 were asked how many jobs they have hold in their lifetimes. Also recorded were gender and educational attainment. The categories are Less than high school (E1) High school (E2) Some college/university...

In a recent poll of 980 homeowners in the United States, one in four homeowners reports...

In a recent poll of 980 homeowners in the United States, one in four homeowners reports having a home equity loan that he or she is currently paying off. Using a confidence coefficient of 0.95, derive the interval estimate for the proportion of all homeowners in the United States that hold a home equity loan. (You may find it useful to reference the z table. Round intermediate calculations to at least 4 decimal places. Round "z" value and final answers...

In an open economy the demand for money Select one: a. increases because foreigners hold money...

In an open economy the demand for money Select one: a. increases because foreigners hold money to buy domestic assets. b. decreases because foreigners hold domestic currency in their countries. c. is no different than in a closed economy. d. doesn't change unless the world interest rate changes.

Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A...

Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession .25 .03 −.15 Normal .55 .13 .13 Boom .20 .16 .33 a. Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) b. Calculate the standard deviation for the two stocks. (Do not round your intermediate calculations. Enter your answers as a percent rounded to 2 decimal...

Rate of return if state occurs State of economy Probability of state of economy Stock A...

Rate of return if state occurs State of economy Probability of state of economy Stock A Stock B Stock C Boom 0.3 0.35 0.45 0.38 Good 0.3 0.15 0.20 0.12 Poor 0.3 0.05 –0.10 –0.05 Bust 0.1 0.00 –0.30 –0.10 5. Consider the following information on three stocks in four possible future states of the economy: Your portfolio is invested 30% in A, 50% in B, and 20% in C. What is the expected return of your portfolio? What...

State of Economy Probability of State of Economy Return of Stock A if State Occurs Return...

State of Economy Probability of State of Economy Return of Stock A if State Occurs Return of Stock B if State Occurs Recession 0.30 -0.20 0.10 Normal ? 0.30 0.20 Boom 0.15 0.40 0.30 What is the expected return for Stock A? What is the standard deviation for Stock A? Suppose you have $50,000 total. If you put $20,000 in Stock A and the remainder in Stock B, what are the portfolio returns in each state? Suppose you have $50,000...

Question