A Sample of 30 Year Fixed Mortgage Rates at 12 $\mathbf { C l }$

Multiple Choice

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 0.38%. 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. At the 0.05 level of significance, the
Correct conclusion is Two-Sample T-Test and $\mathbf { C l }$
$\begin{array} { l r r r r } \text { Sample } & \mathbb { N } & \text { Mean } & \text { StDev } & \text { SE Mean } \\ 1 & 12 & 6.650 & 0.390 & 0.11 \\ 2 & 16 & 7.050 & 0.220 & 0.055 \end{array}$
Difference $= m u$ (1) $- \mathrm { mu }$ (2)
Bstimate for difference: $- 0.400$
$95 \%$ CI for difference: $( - 0.666 , - 0.134 )$
$T$ -Test of difference $= 0$ (vs not $= ) : T$ -Value $= - 3.19$ p-Value $= 0.006 \quad \mathrm { DF } = 16$

A) Reject the null hypothesis.
B) Do not reject the null hypothesis.
C) Evidence suggests that there is a significant difference in mean mortgage rates
Between credit unions and banks.
D) Both A and C.
E) Both B and C.