document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=122930>Question 122930</A>This question is from textbook <A HREF=http://www.amazon.com/exec/obidos/ASIN/0072868244/algebrahomeworkh></A><BR>\n" );
document.write( ": <I><SPAN STYLE=\"word-break: break-all;\"> Hypothesis Testing<BR>\n" );
document.write( "Please help in answering this question Please it's due by Monday Night\r<BR>\n" );
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document.write( "44) 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): \r<BR>\n" );
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document.write( "4.8   5.3   6.5   4.8   6.1   5.8    6.2     5.6\r<BR>\n" );
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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.<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #90369 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=90369\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> 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): <BR>\n" );
document.write( "4.8 5.3 6.5 4.8 6.1 5.8 6.2 5.6 <BR>\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<BR>\n" );
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document.write( "I'm going to assume you are using a T-test for means.<BR>\n" );
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document.write( "Ho: mu = 6<BR>\n" );
document.write( "Ha: mu < 6<BR>\n" );
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document.write( "x-bar for your data = 5.6375<BR>\n" );
document.write( "t(5.6375) = -1.6157<BR>\n" );
document.write( "The p-value = 0.0751<BR>\n" );
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document.write( "Conclusion: Since p>0.01 fail to reject Ho. The testing does<BR>\n" );
document.write( "not give sufficient statistical evidence to support the Wall<BR>\n" );
document.write( "Street Journal claim that the rate is less than 6%<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
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