Use of level of significance in statistics

Reference no: EM13109107

The director of Suntrust Hills company is concerned about the high cost of mortgage loan interest rates. The bank has no possibility of modifying the rates under the current economic conditions. The bank manager decides to survey a sample of the surrounding towns to see what people are paying for similar home interest rates. The telephone sample of 20 homes indicated that the customers are paying X (bar) = $185.4 and s = $32.20 for a yearly contract.

a. Using the 0.05 level of significance, is there evidence that the population mean is above $190?

b. What is your answer in (a) if s = $50 and the 0.10 level of significance is used?

c. What is your answer in (a) if X (bar) = $199.00 and s = $20.20?

Reference no: EM13109107

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