Analyzing the interest rates for equivalent municipal bonds


Complete the following mcq:

Q1: 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)

Q2: One poll found that 44% of male voters will support a candidate while another found that 50% of female voters will be in support. To test whether this candidate has equal levels of support between male and female voters, the alternative hypothesis should be

A)H1:Pmale <50%, H1:Pfemale>50%
B)H1:Pmale=/44%, H1:Pfemale=/50%
C)H1:Pmale=/Pfemale
D)H1:Pmale = P female

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