document.write( "Question 401555: 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):
\n" ); document.write( "4.8 5.3 6.5 4.8 6.1 5.8 6.2 5.6
\n" ); document.write( "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.
\n" ); document.write( " \n" ); document.write( "
Algebra.Com's Answer #284145 by stanbon(75887)\"\" \"About 
You can put this solution on YOUR website!
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):
\n" ); document.write( "4.8 5.3 6.5 4.8 6.1 5.8 6.2 5.6
\n" ); document.write( "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.\r
\n" ); document.write( "\n" ); document.write( "---
\n" ); document.write( "Ho: p>= 6
\n" ); document.write( "H1: p < 6 (claim)
\n" ); document.write( "-----
\n" ); document.write( "p-hat = 5.64
\n" ); document.write( "test stat: z(5.64) = (5.64-6)/[0.63/sqrt(8)] = -1.6162..
\n" ); document.write( "---
\n" ); document.write( "p-value: P(z< -1.6162) = 0.0530
\n" ); document.write( "----
\n" ); document.write( "Conclusion:
\n" ); document.write( "Since the p-value is greater than 1%, fail to reject Ho.
\n" ); document.write( "The test results support the claim at the 1% level.
\n" ); document.write( "-------
\n" ); document.write( "Cheers,
\n" ); document.write( "Stan H. \n" ); document.write( "
\n" );