Question
A bond analyst is analyzing the interest rates for equivalent municipal bonds issued by two different states. At a=0.05, is there enough evidence to conclude
A bond analyst is analyzing the interest rates for equivalent municipal bonds issued by two different states. At a=0.05, is there enough evidence to conclude that there is a difference in the interest rates paid by the two states?
State A State B
Sample size 80 50
Mean interest rate 4.0 4.5
Population variance 0.04 0.03
A) Yes, because the test value -15.08 is outside the critical region -1.96 B) Yes, because the test value -4.55 is outside the critical region -1.96 C) Yes, because the test value 227.27 is outside the critical region -1.96 D) No, because the test value -0.01 is inside the critical region -1.96
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