Use the following to answer the question(s) below.
A sample of 30-year fixed mortgage rates at 12 randomly chosen credit unions yields a mean rate of 6.65 % and a sample standard deviation of 0.39%. A sample of 30-year fixed mortgage rates at 16 randomly selected banks yields a mean rate of 7.05% and a sample standard deviation of 0.22%. Are the mean rates different between credit unions and banks? Relevant output is shown below.
-Which of the following is true?
A) This is a paired t-test.
B) This is a test for two means from independent samples.
C) This is a one-tailed test.
D) This is a paired design and one-tailed t-test.
E) This is a pooled t-test.

Question

Use the following to answer the question(s) below.
A sample of 30-year fixed mortgage rates at 12 randomly chosen credit unions yields a mean rate of 6.65 % and a sample standard deviation of 0.39%. A sample of 30-year fixed mortgage rates at 16 randomly selected banks yields a mean rate of 7.05% and a sample standard deviation of 0.22%. Are the mean rates different between credit unions and banks? Relevant output is shown below. 
-Which of the following is true?
A) This is a paired t-test. 
B) This is a test for two means from independent samples. 
C) This is a one-tailed test. 
D) This is a paired design and one-tailed t-test. 
E) This is a pooled t-test.

Quizplus · Accepted Answer

The question is asking whether there is a difference between two means (credit unions and banks), which suggests a test for two means from independent samples. Additionally, there is no indication of pairing in the data, ruling out option A and D. The question also does not specify a directional hypothesis, so it is not a one-tailed test, ruling out option C. Finally, there is no indication of using a pooled variance, ruling out option E.

Use the Following to Answer the Question(s) Below