Using SAS, produce an appropriate graphical summary of the dataset. Why did you choose this graph? Explain.
The graph in figure 1 is a time series graph. The graph can be used to depict trends and counts over a period of time. The x-axis shows the date and time information as the data is continuous and categorical while the y-axis shows the 30-year fixed rate mortgage weekly averages from 1/7/2010 to 8/16/2018. From the series graph, it possible to see how the weekly averages have been trending right from 2010 to 2019 and therefore, it provides an ease of analysis.
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Using SAS, compute mean, standard deviation, and five-number summary of the dataset. Describe the center and spread.
The mean of the 30-year fixed rate mortgage weekly averages from 1/7/2010 to 8/16/2018 is
and the standard deviation is
. The mean in this case is the center while the spread is the difference between the minimum and maximum values and is therefore
.
Using SAS, construct a 95% confidence interval for the mean weekly averages. Interpret this confidence interval.
Table 2 above shows the results from SAS showing the 95% confidence intervals. From the table, it can be concluded that we are 95% sure that the mean of the population regarding the 30-year fixed rate mortgage weekly averages from 1/7/2010 to 8/16/2018 lies between
and
. Therefore, the mortgage broker claims that the mean rate will be higher than 4.60% are baseless and unreasonable since the value does not lie between
and
.
References
Create and use a time series graph—Insights Create | Documentation. (2019). Retrieved 3 October 2019, from https://doc.arcgis.com/en/insights/create/time-series.htm
Lane, D. (2019). Confidence Intervals Introduction. Retrieved 3 October 2019, from http://onlinestatbook.com/2/estimation/confidence.html
