(a) One recent report (Bankrate.com Aug. 23, 2006) had the average libor rate at 5.40% for 3 months loans a value considered high by many western banks. Set up the null and alternative hypothesis for testing the reported value.

(b) The United states department of defense polygraph institute claims the camera can correctly detect liars 75% of the time by monitoring the temperatures of their faces. Give null hypothesis for testing the claim made by the DDPI