Identify the top three concepts or skills you learned in this course that you believe will be the most useful to you in your current or future professional career or education along with rationale as to their importance to someone in the field of business statistics. Also, provide at least one specific example to support your response.

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 have 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 have 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