SOLUTION: Hypothesis Testing Please help in answering this question Please it's due by Monday Night 44) A recent article in the Wall Street Journal reported that the 30-year mortgage r

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Question 122930This question is from textbook
: Hypothesis Testing
Please help in answering this question Please it's due by Monday Night

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):
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.
This question is from textbook

Answer by stanbon(75887) (Show Source):
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):
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.
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I'm going to assume you are using a T-test for means.
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Ho: mu = 6
Ha: mu < 6
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x-bar for your data = 5.6375
t(5.6375) = -1.6157
The p-value = 0.0751
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Conclusion: Since p>0.01 fail to reject Ho. The testing does
not give sufficient statistical evidence to support the Wall
Street Journal claim that the rate is less than 6%
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Cheers,
Stan H.