A national interest rate on houses for 25 years is 4.3%. A banker in a large northwestern city believes that the local interest

Question

suter [353]

3 years ago

11

A national interest rate on houses for 25 years is 4.3%. A banker in a large northwestern city believes that the local interest

rates are lower than the national rate. What is the null hypothesis that this banker wishes to test?

Mathematics

1 answer:

stepladder [879] · Answer 1 · 2021-12-13T19:05:59+03:00

The national interest rate on houses for 25 years is 4.3%. The banker wishes to test that the local interest rates are lower than the national rate. So he should use the initial data of 4.3% interest as his base data. Then he should investigate the rates of houses in the local vicinities and compare it to his base data.