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A Bond Analyst Is Analyzing the Interest Rates for Equivalent

Question 7

Multiple Choice

A bond analyst is analyzing the interest rates for equivalent municipal bonds issued by two different states. At α = 0.05, is there enough evidence to conclude that 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 α = 0.05, is there enough evidence to conclude that there is a difference in the interest rates paid by the two states?   A)  Yes, because the test value -11.16 is outside the critical region   B)  Yes, because the test value -3.11 is outside the critical region   C)  Yes, because the test value 124.44 is outside the critical region   D)  No, because the test value -0.01 is inside the critical region


A) Yes, because the test value -11.16 is outside the critical region A bond analyst is analyzing the interest rates for equivalent municipal bonds issued by two different states. At α = 0.05, is there enough evidence to conclude that there is a difference in the interest rates paid by the two states?   A)  Yes, because the test value -11.16 is outside the critical region   B)  Yes, because the test value -3.11 is outside the critical region   C)  Yes, because the test value 124.44 is outside the critical region   D)  No, because the test value -0.01 is inside the critical region
B) Yes, because the test value -3.11 is outside the critical region A bond analyst is analyzing the interest rates for equivalent municipal bonds issued by two different states. At α = 0.05, is there enough evidence to conclude that there is a difference in the interest rates paid by the two states?   A)  Yes, because the test value -11.16 is outside the critical region   B)  Yes, because the test value -3.11 is outside the critical region   C)  Yes, because the test value 124.44 is outside the critical region   D)  No, because the test value -0.01 is inside the critical region
C) Yes, because the test value 124.44 is outside the critical region A bond analyst is analyzing the interest rates for equivalent municipal bonds issued by two different states. At α = 0.05, is there enough evidence to conclude that there is a difference in the interest rates paid by the two states?   A)  Yes, because the test value -11.16 is outside the critical region   B)  Yes, because the test value -3.11 is outside the critical region   C)  Yes, because the test value 124.44 is outside the critical region   D)  No, because the test value -0.01 is inside the critical region
D) No, because the test value -0.01 is inside the critical region A bond analyst is analyzing the interest rates for equivalent municipal bonds issued by two different states. At α = 0.05, is there enough evidence to conclude that there is a difference in the interest rates paid by the two states?   A)  Yes, because the test value -11.16 is outside the critical region   B)  Yes, because the test value -3.11 is outside the critical region   C)  Yes, because the test value 124.44 is outside the critical region   D)  No, because the test value -0.01 is inside the critical region

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