Author Question: In testing the hypotheses H0: = 0.40, H1: > 0.40 at the 5 significance level, if the sample ... (Read 38 times)

yoooooman · **on:** Jun 24, 2018

In testing the hypotheses H0: = 0.40, H1: > 0.40 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:
a. to reject H0.
b. not to reject H0.
c. to reject H1.
d. to reject both H0 and H1.

Question 2

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 = 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.
e. Yes, because the sample mean of 9.25 is below 9.5.