describe Arizona municipal bond Problem - Normal Distribution
Lately the national average yield on municipal bonds has been μ = 4.19%. A arbitrary sample of 16 Arizona municipal bonds gave an average yield of 5.11% with a sample standard deviation s = 1.15%. Does this signpost that the populations mean yield for all Arizona municipal bonds is superior to the national average? Use α = 0.05. Assume x is usually distributed.
1) State the null and the alternate hypothesis.
2) Identify the sampling distribution to be used: the standard normal distribution or the Student's t distribution. Find the critical value(s).
3) Compute the z or t value of the sample test statistic.
4) Find the P value or an interval containing the P value for the sample test statistic.
5) Based on your answers to a through d, decide whether or not to reject the null hypothesis at the given significance level. describe your conclusion in the context of the problem.