A stock market investor monitors the interest rates paid by banks, and he checks whether the...
A stock market investor monitors the interest rates paid by banks, and he checks whether the mean rate has changed from the previous week’s value of 9.28 percent. He surveys 50 banks, and calculates a mean rate of 9.33 percent and a standard deviation of 0.37 percent.
a. Assuming normality, is there sufficient evidence to conclude that the mean rate has changed ? Use a 0.05 level of significance and write hypothesis testing steps explicitly.
b. Find the p-value that corresponds to the test statistic. Would you reject H0 by using the p-value? Why ?
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A stock market investor monitors the interest rates paid by
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