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Question: A mortgage specialist would like to analyze the average mortgage rates for Atlanta, Georgia. He studies the following sample APR quotes. These are the annual percentage rates (APR) for 30-year fixed loans. If he is willing to assume that these rates are randomly drawn from a normally distributed population, can he conclude that the mean mortgage rate for the population exceeds 4.2%? Test the hypothesis at a 10% level of significance using

(a) the p-value approach and

(b) the critical value approach.

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Management Theories, Management Studies

Category:- Management Theories
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