Question

A finance journal, which publishes research on current financial topics, states that the maturity term for a certificate of deposit is, on average, 10 years. A banker believes the average maturity term at their bank is different than the amount quoted in the finance journal. After completing a study, the banker found that the average maturity term for a certificate of deposit is 8 years, on average.
Required:
As the banker sets up a hypothesis test to determine if their belief is correct, what is the banker's claim?

Answer 1

Answer:

Following are the solution to the given question:

Step-by-step explanation:

In this the hypothesis is:

$H_{0}:\mu=10\\\\H_{1}:\mu\neq10$

The bankers assert that their bank's average maturity was distinct from that of ten years, that's why the hypothesis of the alternative.