Confidence interval for the mean rate

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Mortgage rates: Following are interest rates (annual percentage rates) for a 30-year fixed rate mortgage from a sample of lenders in Macon, Georgia on June 20, 2013. It is reasonable to assume that the population is approximately normal.

4.75 4.375 4.176 4.679 4.426 4.227 4.125 4.250 3.950 4.191 4.299 4.415

Construct a 99% confidence interval for the mean rate and interpret it.

One week earlier, the mean rate was 4.050%. A mortgage broker claims that the mean rate is now higher. Based on the confidence interval, is this a reasonable claim? Explain.

Reference no: EM132851894

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