Analyzing the interest rates for equivalent municipal bonds

Assignment Help Basic Statistics

Reference no: EM1321510

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, because the test value -0.02 is inside the interval (-1.96, 1.96)

B) Yes, because the test value 445.79 is outside the interval (-1.96, 1.96)

C) Yes, because the test value -21.11 is outside the interval (-1.96, 1.96)

D) Yes, because the test value -8.11 is outside the interval (-1.96, 1.96)

Reference no: EM1321510

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