The interest rate at which London banks lend money to one another is called the London interbank offered rate, or Libor. The British Bankers Association regularly surveys international banks for the Libor rate. One recent report (Bankrate.com, March 16, 2016) had the average Libor rate at 1.2% for 1-year loans-a value considered high by many Western banks. Set up the null and alternative hypotheses for testing the reported value.