Explanation of significance level

Reference no: EM13110472

In recent years, the interest rate on home mortgages has declined to less than 6.0 percent. However, according to a study by the Federal Reserve Board, the rate charges on credit card debt is more than 14 percent. Listed below is the interest rate charged on a sample of 10 credit cards.

14.6 16.7 17.4 17.0 17.8 15.4 13.1 15.8 14.3 14.5

Is it reasonable to conclude the mean rate charged is greater than 14 percent? Use the 0.01 significance level.

Reference no: EM13110472

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