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Test whether the mean rate is less than 6%. Use P-value approach.
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
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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The probability of obtaining a random sample mean, which is lower than the population mean, is:
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