Evaluating the p-value for mortgage rate for small banks

Reference no: EM1314003

Q1) Recent article in The Wall Street Journal reported that 30-year mortgage rate is now less than 6%. Sample of eight small banks in Midwest disclosed the following 30-year rates (in percent):

Mortgage Rate
4.8
5.3
6.5
4.8
6.1
5.8
6.2
5.6

At.01 significance level, can we conclude that 30-year mortgage rate for small banks is less than 6%? Evaluate the p-value.

Q2) Dole Pineapple, Inc., is worried that 16-ounce can of sliced pineapple is being overfilled. Suppose standard deviation of process is .03 ounces. Quality control department took random sample of 50 cans and found that arithmetic mean weight was 16.05 ounces. At 5 percent level of significance, can we conclude that mean weight is greater than 16 ounces? Find out the p-value.

Reference no: EM1314003

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