In recent times, with mortgage rates at low levels, financial institutions have had to provide more customer convenience. One of the innovations offered by Coastal National Bank and Trust is the on-line entry of mortgage applications. Listed below is the time, in minutes, to complete the application process for customers applying for a 15-year fixed-rate and a 30- year fixed-rate mortgage.
At the .05 significance level, is it reasonable to conclude that it takes less time for those customers applying for the 30-year fixed-rate mortgage? Do not assume the distribution times follow a normal distribution for either group.
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The solution uses a hypothesis test to determine whether or not the introduction of online mortgage application gives a competitive edge for Coastal National bank.