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A mortgage specialist would like to analyze the average mortgage rates for Atlanta. He studies the following sample APR quotes for Atlanta, Georgia. He studies the following sample APR quotes. These are the annual percentage rates (APR) for 30-year fixed loans. If he is willing to assume that these rates are randomly drawn from a normally distributed population, can he conclude that the mean mortgage rate for the population exceeds 4.2%? Test the hypothesis at a 10% level of significance using
a) the P-Value approach
b) the critical value approach
G Squared Financial - APR - 4.125%
Best Possible Mortgage - APR - 4.250%
Hersch Financial Group - APR - 4.250%
Total Mortgages Services - APR - 4.375%
Wells Fargo - APR - 4.375%
Quicken Loans - APR - 4.500%
Amerisave - APR - 4.750%
Please include all working outs and formulas.
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