Analyzing the interest rates for equivalent municipal bonds

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

Questions Cloud

Component of business to change : Corporate culture has been said to be the toughest component of a business to change. Do you agree or disagree with this statement and why?

Calculating power of test using a sample : Calculate power of test if researcher uses a sample of n = 16 individuals.

Marketplace for engagement rings is in equilibrium : Assume that the marketplace for engagement rings is in equilibrium.

Valuation of human assets and measuring human capital : What challenges exist relative to valuation of human assets and measuring human capital?

Analyzing the interest rates for equivalent municipal bonds : A bond analyst is analyzing the interest rates for equivalent municipal bonds issued by two different states.

Brown shoe company cut its costs in order to increase : Would you suggest that the Brown Shoe Company cut its costs in order to increase its revenue.

Write a report on hiv : Write a report on HIV (Human Immunodeficiency Virus)? Report should include the introduction of HIV virus, HIV Transmission, HIV IS NOT TRANSMITTED, HIV Progression and Symptoms, SYMPTOMS OF AIDS and HIV detection,

Estimated cohen-s d to measure size of treatment effect : Calculate estimated Cohen's d to measure size of treatment effect.

Effective project manager : Determine which of the eight traits or skills associated with being an effective project manager would be the most effective when managing a group of newly hired engineers. Justify your position.

User Account

All Pages