Use the table for the question(s) below.
Suppose the term structure of interest rates is shown below:
-What is the shape of the yield curve and what expectations are investors likely to have about future interest rates?
Definitions:
P-value
A statistical measure that helps to determine the significance of results, indicating the probability of observing the results given that the null hypothesis is true.
Null Hypothesis
Null hypothesis refers to a statement used in statistics that suggests no statistical significance exists in a set of given observations.
Alternative Hypothesis
The alternative hypothesis is a statement in hypothesis testing that proposes a specific relationship between variables, contrasting the null hypothesis.
One-sided Test
A hypothesis test in which the region of rejection is on only one side of the sampling distribution, assessing either a lower or upper tail.
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