The following interest rates were collected from a random sample of banks in Atlanta Georgia (data
is taken from the text): 4.33, 4.46, 4.55, 4.40, 4.20, 4.46, 4.53, 4.37, 4.41, 4.64, 4.80, 4.84
1) To conduct hypothesis tests or construct confidence intervals, what must we assume to be
true?
2) Construct a 95% confidence for the average interest rate in Atlanta.
What is the margin of error?
3) Test if the interest rates in Atlanta are higher than the national average with a level of
significance of α = .05. The national average is 4.41
Include in your answer:
The hypotheses
Which distribution and why, and one-tail or two
The critical values
A drawing
What the level of significance means
The critical value(s)
The conclusion and why
The p-value with a conclusion and why
The conclusion stated in English
4) Test if the standard deviation of interest rates in Atlanta are higher than the national average
with a level of significance of α = .05. The national average is .15
Include in your answer:
The hypotheses
Which distribution and why, and one-tail or two
The critical values
A drawing
What the level of significance means
The critical value(s)
The conclusion and why
We don’t do p-value method when testing standard deviation
The conclusion stated in English