Answer:
Yes it is reasonable to conclude the mean rate charged is greater than 14%
Step-by-step explanation:
From the question we are told that
The population mean is [tex]\mu = 0.14[/tex]
The sample size is [tex]n = 10[/tex]
The sample mean is [tex]\= x = 0.1564[/tex]
The standard deviation is [tex]\sigma = 0.01561[/tex]
The level of significance is [tex]\alpha = 0.01[/tex]
The null hypothesis is [tex]H_o: \mu = 0.14[/tex]
The alternative hypothesis is [tex]H_a : \mu > 0.14[/tex]
Generally the test statistic is mathematically represented as
[tex]t = \frac{ \= x - \mu }{ \frac{\sigma }{\sqrt{n} } }[/tex]
substituting values
[tex]t = \frac{ 0.1564 - 0.14 }{ \frac{0.01561 }{\sqrt{10} } }[/tex]
[tex]t = 3.322[/tex]
Now the p-value obtained from the z-table is
[tex]p-value = P(t > 3.322) = 0.00044687[/tex]
Since the [tex]p-value < \alpha[/tex] then we reject the null hypothesis, hence we can conclude that the mean rate charged is greater than 14%
