Question

In: Statistics and Probability

"A recent articles in the wall street journal reported that the 30-year mortgage rate is now...

"A recent articles in the wall street journal reported that the 30-year mortgage rate is now less than 6 percent. A sample of eight small banks in the Midwest revealed the following 30-year rates (in percent): 4.8 5.3 6.5 4.8 6.1 5.8 6.2 5.6 At the 0.01 significance level, can we conclude that the 30-year mortgage rate for small banks is less than 6 percent? (s=0.6346)

Solutions

Expert Solution

For th given data

mean = 5.6375

s.d = 0.6346

n =8

Conclusion

It is concluded that the null hypothesis Ho is not rejected. Therefore, there is not enough evidence to conclude that

the 30-year mortgage rate for small banks is less than 6 percent at the 0.01 significance level

orchestra answered 1 year ago
Next > < Previous

Related Solutions

A recent edition of The Wall Street Journal reported interest rates of 6.2 percent, 6.55 percent,...
A recent edition of The Wall Street Journal reported interest rates of 6.2 percent, 6.55 percent, 6.85 percent, and 6.95 percent for three-year, four-year, five-year, and six-year Treasury notes, respectively. According to the unbiased expectations theory, what are the expected one-year rates for years 4, 5, and 6 (i.e., what are 4f1, 5f1, and 6f1)? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))       Expected One-Year          Forward Rates     Year 4 %         Year 5 %         Year...
A recent edition of The Wall Street Journal reported interest rates of 7.6 percent, 7.95 percent,...
A recent edition of The Wall Street Journal reported interest rates of 7.6 percent, 7.95 percent, 8.25 percent, and 8.35 percent for three-year, four-year, five-year, and six-year Treasury notes, respectively. According to the unbiased expectations theory, what are the expected one-year rates for years 4, 5, and 6 (i.e., what are 4f1, 5f1, and 6f1)? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))       Expected One-Year          Forward Rates     Year 4 %         Year 5 %         Year...
In a recent year, the average daily circulation of the Wall Street Journal was 2,276,207. Suppose...
In a recent year, the average daily circulation of the Wall Street Journal was 2,276,207. Suppose the standard deviation is 70,940. Assume the paper’s daily circulation is normally distributed. (a) On what percentage of days would circulation pass 1,794,000? (b) Suppose the paper cannot support the fixed expenses of a full-production setup if the circulation drops below 1,619,000. If the probability of this even occurring is low, the production manager might try to keep the full crew in place and...
In a recent year, the average daily circulation of the Wall Street Journal was 2,276,207. Suppose...
In a recent year, the average daily circulation of the Wall Street Journal was 2,276,207. Suppose the standard deviation is 70,940. Assume the paper’s daily circulation is normally distributed. (a) On what percentage of days would circulation pass 1,814,000? (b) Suppose the paper cannot support the fixed expenses of a full-production setup if the circulation drops below 1,622,000. If the probability of this even occurring is low, the production manager might try to keep the full crew in place and...
The Wall Street Journal reported that the age at first startup for 90% of entrepreneurs was...
The Wall Street Journal reported that the age at first startup for 90% of entrepreneurs was 29 years of age or less and the age at first startup for 10% of entrepreneurs was 30 years of age or more. (a) Suppose a sample of 200 entrepreneurs will be taken to learn about the most important qualities of entrepreneurs. Show the sampling distribution of p where p is the sample proportion of entrepreneurs whose first startup was at 29 years of...
The Wall Street Journal reported that the age at first startup for 25% of entrepreneurs was...
The Wall Street Journal reported that the age at first startup for 25% of entrepreneurs was 29 years of age or less and the age at first startup for 75% of entrepreneurs was 30 years of age or more. (a) Suppose a sample of 200 entrepreneurs will be taken to learn about the most important qualities of entrepreneurs. Show the sampling distribution of p where p is the sample proportion of entrepreneurs whose first startup was at 29 years of...
You check the Wall Street Journal for bond prices and find that a 30-year, 6% coupon...
You check the Wall Street Journal for bond prices and find that a 30-year, 6% coupon (paid semiannually, of course) Minnesota Mining and Manufacturing bond is selling for $870. The bond has a par value of $1,000. You only want to hold the bond for 12-years at which time you believe you can sell the 3M bond to yield 8%. What is the total return on your horizon if you can reinvest all coupons at 7%? Don’t forget to find...
QUESTION 1 The Wall Street Journal reported that the average amount of time that a French...
QUESTION 1 The Wall Street Journal reported that the average amount of time that a French person spends eating lunch at a restaurant is 22 minutes. Perform a hypothesis test to determine if a difference exists between the average time an American spends eating lunch when compared to a person from France. The following data represents the time, in minutes, that random French and American diners spent at lunch. Assume that the population variances are unequal. American 21 17 17...
3) The Wall Street Journal reported that recipients of a bachelor degree with major in business...
3) The Wall Street Journal reported that recipients of a bachelor degree with major in business receive average starting salaries of $55,000 in 2017, with a standard deviation of $4,000. A sample of 100 salaries from business majors collected in 2018 shows a mean starting salary of $ $54,000. You are hired as a statistician to investigate whether there are salary differences for business majors in 2018 with respect to 2017. Allow for 5% error on a two tail test....
3) The Wall Street Journal reported that recipients of a bachelor degree with major in business...
3) The Wall Street Journal reported that recipients of a bachelor degree with major in business receive average starting salaries of $55,000 in 2017, with a standard deviation of $4,000. A sample of 100 salaries from business majors collected in 2018 shows a mean starting salary of $ $54,000. You are hired as a statistician to investigate whether there are salary differences for business majors in 2018 with respect to 2017. Allow for 5% error on a two tail test....
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT