Question

Question 13 (1 point) Saved The average prime rate for large banks is 9. A sample of 12 banks in Doha showed the following rates: 10.1 9.3 9.5 10.2 9.8 9.6 8.8 11.2 9.4 10.0 9.3 9.1 In a test of hypothesis of no difference, with a = 0.05 what is the decision of the test? Inconclusive. O Reject H Reject HA Do not reject Ho

Answer 1

Answer: Reject Ho

Explanation:

Null Hypothesis,Ho: The average prime rate of large banks is 9 i.e. $\boldsymbol{\mu =9}$

Alternative hypothesis, Ha: The average prime rate of large banks is significantly different from 9 i.e. $\boldsymbol{\mu \neq 9}$

Test - Statistics: Under Ho,

T- t » tn 1 u/s n

Here,

$\boldsymbol{t = \frac{9.6917 - 9}{0.6317/ \sqrt{12}}=3.79 }$

$\boldsymbol{p-value =P[|t_{11} |> 3.79] =0.003}$

Conclusion: Since , p-value < 0.05 so we Reject Ho.