TABLE 9-5 A Bank Tests the Null Hypothesis That the Mean Age

question 59

True/False

TABLE 9-5
A bank tests the null hypothesis that the mean age of the bank's mortgage holders is less than or equal to 45 years, versus an alternative that the mean age is greater than 45 years. They take a sample and calculate a p-value of 0.0202.
-Referring to Table 9-5, the null hypothesis would be rejected at a significance level of α = 0.01.

---

Definitions:

Securities

Financial instruments that represent ownership positions in publicly traded corporations (stock), creditor relationships with governmental bodies or corporations (bonds), or rights to ownership as represented by an option.

Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company’s earnings.

Expected Inflation Rates

The anticipated rate at which the general level of prices for goods and services will rise over a period of time.

Interest Rate

The percentage charged or paid for the use of money, typically expressed as an annual rate.