SOLUTION: You randomly select 20 mortgage institutions and determine the current mortgage intrest rate at each. The sample mean rate is 6.22% with a sample standard deviation of 0.42%. Find

Algebra.Com
Question 451287: You randomly select 20 mortgage institutions and determine the current mortgage intrest rate at each. The sample mean rate is 6.22% with a sample standard deviation of 0.42%. Find the 99% confidence interval for the population mean mortgage interest rate. Assume the interest rates are approximately normally distributed.
Answer by ewatrrr(24785)   (Show Source): You can put this solution on YOUR website!
 

Hi,

sample (20)mean rate is 6.22% with a sample standard deviation of 0.42%.

ind the %confidence interval for the population mean mortgage interest rate.

ME = [.42/sqrt(20)] = .24	

CI: 6.22-.24 < u < 6.22 +.24		

 

RELATED QUESTIONS


Your annual income is $50,000. You want to take out a mortgage loan to buy a house. The... (answered by Theo)

please solve this problem for me
If the current fixed mortgage rate of 4.70% rises to... (answered by math_tutor2020,ikleyn)

Find the monthly mortgage payment for a mortgage of $93,000 at 7.75% per annum, amortized  (answered by ewatrrr)

Find the monthly mortgage payment for a mortgage of $93,000 at 7.75% per annum, amortized  (answered by rfer)

Suppose you take out a mortgage for $550000 at 7.5% interest per year compounded... (answered by ikleyn,Theo)

Five years ago, Diane secured a bank loan of $360,000 to help finance the purchase of a... (answered by Theo)

Suppose you want to purchase a $ 195000 house. If you put 20% down and finance the rest... (answered by Theo,math_tutor2020)

An analyst of personal loans in a local bank revealed the following facts: 10% of all... (answered by solver91311)

The Brown's want to purchase a house that costs $130,000.  They plan to take out a... (answered by rcmcc)