Question

A recent article in The Wall Street Journal reported that the home equity loan rate is now less than 4%. A sample of eight small banks in the Midwest revealed the following home equity loan rates (in percent): 3.6 4.1 5.3 3.6 4.9 4.6 5.0 4.4 At the .01 significance level, can we conclude that the home equity loan rate for small banks is less than 4%? Estimate the p-value.

          A recent article in The Wall Street Journal reported that the home equity loan rate is now less than 4%. A sample of eight small banks in the Midwest revealed the following home equity loan rates (in percent):
3.6 4.1 5.3 3.6 4.9 4.6 5.0 4.4
At the .01 significance level, can we conclude that the home equity loan rate for small banks is less than 4%? Estimate the p-value.

A recent article in The Wall Street Journal reported that the home equity loan rate is now less than 4%. A sample of eight small banks in the Midwest revealed the following home equity loan rates (in percent):
3.6 4.1 5.3 3.6 4.9 4.6 5.0 4.4
At the .01 significance level, can we conclude that the home equity loan rate for small banks is less than 4%? Estimate the p-value.

Added by Austin R.

Elementary Statistics a Step by Step Approach

Allan G. Bluman 9th Edition

Instant Answer

Solved by Expert Kari Hasz

05/11/2023

Step 1

Null hypothesis (H₀): The home equity loan rate for small banks is equal to 4%. Alternative hypothesis (H₁): The home equity loan rate for small banks is less than 4%. Show more…

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A recent article in The Wall Street Journal reported that the home equity loan rate is now less than 4%. A sample of eight small banks in the Midwest revealed the following home equity loan rates (in percent): 3.6 4.1 5.3 3.6 4.9 4.6 5.0 4.4 At the .01 significance level, can we conclude that the home equity loan rate for small banks is less than 4%? Estimate the p-value.