Home mortgage interest rates

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Reference no: EM13111579

Home mortgage interest rates for 30-year fixed rate loans vary throughout the country. During the summer 2000, data available from various parts of the country suggested that the standard deviation of the interest rates was .096 (The Wall Street Journal, September 9, 2008). The corresponding variance in interest rates would be (.096) 2 = .009216. Consider a follow-up study in the summer of 2001. The interest rates for 30-year fixed rate loans at a sample of 20 lending institutions had a sample standard deviation of .114. Conduct a hypothesis test using Ho:o2=.009216 to see whether the sample data indicate that the variability in interest rates changed. Use a=.05. What is your conclusion?

Reference no: EM13111579

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