mortgage broker is offering home mortgages at a rate of 9.5%, but the broker is fearful that this value
is higher than many others are charging. A sample of 40 mortgages filed in the county courthouse 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. No, because the test statistic falls in the acceptance region.
B. Yes, because the test statistic is greater than –1.645.
C. Yes, because the sample mean of 9.25 is below 9.5.
D. No, because the test statistic is –1.85 and falls in the rejection region
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im not sure im having trouble with this myself. Was anyone able to find the answer?
1 answer