Is there a difference in the yields of different types ofinvestments? The accompanying data provide yields for aone-year certificate of deposit(CD) and afive-year CD for 25 banks. Complete parts a through c below.

Bank One-Year CD Five-Year CD

1 0.60 4.90

2 0.85 5.00

3 1.00 4.95

4 0.35 3.30

5 0.30 4.00

6 0.35 4.00

7 0.55 3.80

8 2.00 4.30

9 0.70 4.85

10 0.70 4.15

11 0.45 4.45

12 0.45 3.40

13 0.35 4.30

14 0.65 5.00

15 1.75 4.05

16 1.10 4.20

17 1.45 4.95

18 2.25 4.65

19 1.00 5.05

20 1.00 4.50

21 0.40 4.45

22 0.60 3.95

23 0.35 3.40

24 1.20 4.35

25 2.05 4.10

Test:Chaps 8-9 t problems

Question 2

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Is there a difference in the yields of different types ofinvestments? The accompanying data provide yields for aone-year certificate of deposit(CD) and afive-year CD for 25 banks. Complete parts a through c below.

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Click the icon to view the yields forone-year CDs andfive-year CDs.

a. Construct a 90% confidence interval estimate for the mean yield ofone-year CDs.

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(Type integers or decimals rounded to two decimal places asneeded.)

b. Construct a 90% confidence interval estimate for the mean yield offive-year CDs.

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(Type integers or decimals rounded to two decimal places asneeded.)

c. Compare the results of(a) and(b).

Choose the correct answer below.

A.

The mean yield offive-year CDs is greater than the mean yield ofone-year CDs.

B.

One can be 90% confident that the mean yield ofone-year CDs is the same as the mean yield offive-year CDs.

C.

One can be 90% confident that the mean yield ofone-year CDs is less than the mean yield offive-year CDs.

D.

One can be 90% confident that the mean yield ofone-year CDs is greater than the mean yield offive-year CDs.