Testing the claim using single mean z test

Reference no: EM1312639

A mortgage broker is offering home mortgages at a rate of 9.5% but is fearful that this value is higher than many others are charging. A sample of 40 mortgages filed in the county court house shows an average of 9.25% with a standard deviation of 8.61%. Does this sample indicate a smaller average? Use α = 0.05 and assume a normally distributed population.

A) Yes, the test statistic falls in the rejection region.

B) No, the test statistic falls in the acceptance region.

C) Yes, because the test statistic is greater than -1.645.

D) No, because the test statistic is -1.85 and falls in the rejection region.

Reference no: EM1312639

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