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    P value questions for 30 year mortgage rates of 8 small Midwest banks

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    A recent article in the Wall Street Journal reported that the 30 year mortgage rate is now less than 6%. A sample of 8 small banks in the Midwest revealed the following 30 year rates (in percent):

    4.8
    5.3
    6.5
    4.8
    6.1
    5.8
    6.2
    5.6

    At the .01 significance level, can we conclude that the 30 year mortgage rate for small banks is less than 6%? Estimate the P values.

    © BrainMass Inc. brainmass.com June 3, 2020, 8:15 pm ad1c9bdddf
    https://brainmass.com/statistics/hypothesis-testing/p-value-questions-for-30-year-mortgage-rates-of-8-small-midwest-banks-130198

    Solution Preview

    Use Excel, we get the following

    -------------------------------------
    Mean 5.6375
    Standard Error 0.224354232
    Median 5.7
    Mode 4.8
    Standard Deviation 0.634569595
    Sample ...

    Solution Summary

    The solution shows all the formulas and calculations in arriving at the answer.

    $2.19

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