According to Bankrate.com, the current 30 year mortgage rate is now less than 3 per cent. A sample of eight small banks in the Midwest revealed the following rates:

2/9, 2.1, 3.3, 1.6, 2.7, 2.6, 3, & 2.4

Use a level of significance = 0.01

1. State the null and alternate hypothesis:
2. What is the probability of a type I error?
3. Give the formula for the test statistic.
4. State the decision rule:
5. Determine the value of the test statistic.
6. Determine the pvalue.
7. What is your decision regarding the null hypothesis?
8. Interpret, in a single sentence, the result of the statistical test.