A recent article in the Wall Street Journal reported that the 30-year mortgage rate is now
less than 6 percent. A sample of eight small banks in the Midwest revealed the following 30-year rates (in percent):
4.8, 5.3, 6.5, 4.8, 6.1, 5.8, 6.2, 5.6
At the .01 significance level, can we conclude that the 30-year mortgage rate for small
banks is less than 6 percent? Estimate the p-value.
Please see the attached file.
The null hypothesis tested is
H0: The 30-year mortgage rate for small banks is =6 %
H1: The 30-year mortgage rate for small banks is …
The solution gives step by step procedure for the calculation of one sample t test. The answer contain Null Hypothesis, Alternative Hypothesis, Significance Level, Critical Value and P value.