A mortgage specialist would like to analyze the average mortgage rates for Atlanta, Georgia. He collects data on the annual percentage rates (APR in %) for 30-year fixed loans as shown in the...

A mortgage specialist would like to analyze the average mortgage rates for Atlanta, Georgia. He collects data on the annual percentage rates (APR in %) for 30-year fixed loans as shown in the following table. 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 4.20%? Test the hypothesis at a 10% level of significance.(You may find it useful to reference the appropriate table:
z tableor t table)

Source: MSN Money.com; data retrieved October 1, 2010.

 Click here for the Excel Data File

a. Select the null and the alternative hypotheses.

multiple choice 1

• 
  
  
  

  
  H
  ₀:µ ≥ 4.20;H_A
  :µ <>

  
  
  
  


• 
  
  
  

  
  H
  ₀:µ ≤ 4.20;H_A
  :µ > 4.20

  
  
  
  


• 
  
  
  

  
  H
  ₀:μ = 4.20;H_A
  :μ ≠ 4.20

  
  
  
  

b.Calculate the value of the test statistic.(Round intermediate calculations to at least 4 decimal places and final answer to 2 decimal places.)