Testing the claim using single mean z test

Assignment Help Basic Statistics

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

Questions Cloud

Calculating the resistance, current and potential difference : The diagram on the left below shows two resistors in series with an ideal battery, in the diagram on the right; a third resistor has been added in parallel with R2. Calculating the resistance, current and potential difference.

Computation of value of your savings : Computation of value of your savings and explain what is the future value of your savings

Determining the null and alternate hypothesis : A professor of math refutes the claim that the average student spends 3 hours studying for the midterm exam. Which hypothesis is used to test the claim?

Computation of revenue on hedging of an investment : Computation of revenue on hedging of an investment and it must decide whether to use options or a money market hedge to hedge this position

Testing the claim using single mean z test : Does this sample indicate a smaller average? Use α = 0.05 and assume a normally distributed population.

Evaluate the cost of goods sold using the current : Evaluate the cost of goods sold using the current, Acid test ratio and current liabilities and evaluate the owner's equity.

Single mean z-test : At the 5% significance level, if the sample proportion is .45, and the standard error of the sample proportion is .035, the appropriate conclusion would be:

Find the market price of the bonds be : Sinking fund payments for issue of debentures - Which of the two methods should Carter use to meet the current sinking-fund payment due shortly and find the market price of the bonds be?

Sampling frame-matching population : In each of the following situations, the sampling frame does not match the population, resulting in undercoverage. Give examples of population members that might have been omitted:

User Account

All Pages