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 To test whether there is a difference in the interest rates paid by the two states

A bond analyst is analyzing the interest rates for equivalent municipal bonds issued by two different states. At _ = .05, is there a difference in the interest rates paid by the two states?

 

 

State A

State B

Sample size

80

70

Mean interest rate (%)

3.7

4.25

Sample variance

0.02

0.03

A) No, as the test value -0.02 is inside the interval (-1.96, 1.96)
B) Yes, as the test value 445.79 is outside the interval (-1.96, 1.96)
C) Yes, as the test value -21.11 is outside the interval (-1.96, 1.96)
D) Yes, as the test value -8.11 is outside the interval (-1.96, 1.96)

Statistics and Probability, Statistics

  • Category:- Statistics and Probability
  • Reference No.:- M922019

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