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317 exam 3 Spring 2008A

317 exam 3 Spring 2008A - Econ 317 Form A Exam 3 Name 1 A...

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Econ 317 Form A Exam 3 Name_______________________ 1. A consumer advocacy group is interested in learning whether there is a difference among the average life of 3 different brands of tire. Samples from the 3 tire brands presented in the following table. Where the numbers are life of tires in 1000 miles. Goodyear Toyo General 45 66 78 68 72 72 65 64 71 70 58 68 61 Test to determine if a difference exists in the mean life of the 3 brands of tire. Use α = 0.10. 2. We are interested in estimating the difference between the default rate of adjustable rate mortgages and fixed rate mortgages using a 99% confidence interval of width 0.10. If we have no prior knowledge of the proportions how large should each sample size be? 3. We are interested in investigating the difference between the default rate of adjustable rate mortgages (ARM) and fixed rate mortgages (FRM). To investigate this matter 250 ARM and 188 FRM were randomly selected. It was found that that 28 of the ARM and 24 of FRM were in default a. Use a 98% confidence interval to estimate the difference in the default rates. Interpret your results.
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