Reference no: EM132280829
Assignment Requirements -
In this CT assignment, we will examine a real dataset and make appropriate decisions based on confidence interval.
Download the dataset MORTGAGE30US.xls. This dataset contains 30-year fixed rate mortgage weekly averages from 1/7/2010 to 8/16/2018. Put your dataset into in the myfolders/MIS445 on your computer. Then complete the following steps and questions:
a. Using SAS, produce an appropriate graphical summary of the dataset. Why did you choose this graph? Explain.
b. Using SAS, compute the mean, standard deviation, and a five-number summary of the dataset. Describe the center and spread.
c. Using SAS, construct a 95% confidence interval for the mean weekly averages. Interpret this confidence interval.
d. A mortgage broker claims that the mean rate will be higher than 4.60% in the following week. Based on the confidence interval, is this a reasonable claim? Explain.
Take the screenshots of the SAS output and paste them into a Word document along your answers to the questions above. Clearly label the questions and answers.
There are some stages that need to be completed to perform a test:
1) Write down the null hypothesis and the alternative hypothesis;
2) Set the significance level α; the common choices for α are 0.05, 0.01 or 0.1; in general, α is indicated in the text of the problem, but if it is missing, then it is considered to be α=0.05.
3) Find the p-value;
4) Compare the p-value with the significance level: if the p-value is greater than the significance level, then we fail to reject the null hypothesis; if the p-value is less than the significance level, then we reject the null hypothesis.
5) State the conclusion in non-technical terms.
Attachment:- Assignment Files.rar