[Solved] Loan Officer
Instructions Hypothesis Testing A loan officer wants to compare the interest rates for 48-month fixed-rate auto loans and 48-month variable-rate auto loans. Two independent, random samples of auto loans are selected. A sample of eight 48-month fixed-rate auto-loans has the following loan rates: 4.29%, 3.75%, 3.50%, 3.99%, 3.75%, 3.99%, 5.40%, 4.00% while a sample of five 48-month variable-rate auto loans has the loan rates as follows: 3.59%, 2.75%, 2.99%, 2.50%, 3.00% Test statistic and the corresponding p value s are listed below: Test Statistic p Value 3.7431 0.0032 Tasks: Set up the null and alternative hypotheses needed to determine whether the mean rates for 48-month fixed-rate and variable-rate auto loans differ. Identify the test you will apply to test the hypothesis. Justify your choice. Choose an appropriate level of significance. Define type I and type II errors in the context of your hypotheses. State your decision regarding the hypothesis. State the conclusion. Submission Details: Submit a Microsoft Word document that contains your responses to assignment questions, using APA style. Name your document SU_BUS7200_W2_ LastName_FirstInitial.doc For more information on Loan Officer read this: https://en.wikipedia.org/wiki/Loan_officer
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