In this scenario, what is the test statistic?

• The economistwould like to test the claim that the percent of thirty-year fixed-rate mortgage loans that have a4.75
• percent interest rateis less than22%
• .
• Sample size=40
• thirty-year fixed-rate mortgage loans
• Sample proportion=0.125

Calculate the test statisticusing the formula:

z

0

=p

p

0

p

0

(1p

0

)

n

• where:p= sample proportion,
• n= sample size, and
• p0= population proportion under the null hypothesis

Round your answer to2

decimal places.

Provide your answer below: