A bond analyst is analyzing the interest rates for equivalent municipal bonds issued b wo 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 Mean interest rate (%) 60 60 3.2 3.4 Population variance A) Yes, because the test value -5.86 is outside the critical region -1.96

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A bond analyst is analyzing the interest rates for equivalent municipal bonds issued b
wo 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
Mean interest rate (%)
60
60
3.2
3.4
Population variance
A) Yes, because the test value -5.86 is outside the critical region -1.96 <z<1.96
B) Yes, because the test value 34.29 is outside the critical region -1.96 <z < 1.96
C) No, because the test value -1.71 is inside the critical region -1.96 <z <1.96
0.02
0.05
Transcribed Image Text:A bond analyst is analyzing the interest rates for equivalent municipal bonds issued b wo 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 Mean interest rate (%) 60 60 3.2 3.4 Population variance A) Yes, because the test value -5.86 is outside the critical region -1.96 <z<1.96 B) Yes, because the test value 34.29 is outside the critical region -1.96 <z < 1.96 C) No, because the test value -1.71 is inside the critical region -1.96 <z <1.96 0.02 0.05
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