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?
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State A
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State B
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Sample size
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80
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70
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Mean interest rate (%)
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3.7
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4.25
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Sample variance
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0.02
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0.03
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A) No, as the test value -0.02 is inside the interval (-1.96, 1.96)
B) Yes, as the test value 445.79 is outside the interval (-1.96, 1.96)
C) Yes, as the test value -21.11 is outside the interval (-1.96, 1.96)
D) Yes, as the test value -8.11 is outside the interval (-1.96, 1.96)