SOLUTION: Can you please help me with this. Recently the national average yield on municipal bonds has been u=4.19%. A random sample of 16 Arizona municipal bonds gave an average yield o

Question 153094: Can you please help me with this.
Recently the national average yield on municipal bonds has been u=4.19%. A random sample of 16 Arizona municipal bonds gave an average yield of 5.11% with a sample standard deviation s= 1.15%. does this indicate that the population mean yield for all Arizona municipal bonds is greater than the national average? Us a= 0.05. Assume x is normally distributed.
a) state the null and alternate hypothesis.
b) indentify the sampling distribution to be used. the standard normal distribution or the student's T distribution. find the critical value (s).
c) compute the z or t value of the sample test statistic.
d) find the P value or an interval containing the P value for the sample test statistic.
e) Based on your answers to A through D, decide whether or not to reject the null hypothesis at the ficen significance level. Explain your conclusion in the context of the problem.
thank you
carol
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Recently the national average yield on municipal bonds has been u=4.19%. A random sample of 16 Arizona municipal bonds gave an average yield of 5.11% with a sample standard deviation s= 1.15%. does this indicate that the population mean yield for all Arizona municipal bonds is greater than the national average? Us a= 0.05. Assume x is normally distributed.
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a) state the null and alternate hypothesis.
Ho: u = 4.19
Ha: u > 4.19
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b) identify the sampling distribution to be used. the standard normal
distribution or the student's T distribution. find the critical value (s).
Ans: T-distribution with df= 15;
critical value = 1.753
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c) compute the z or t value of the sample test statistic.
t(5.11) = (5.11-4.19)/[1.15/sqrt(16)] = 3.2
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d) find the P value or an interval containing the P value for the sample test statistic.
P(3.2 < t < 100) with df=15 = 0.002982...
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e) Based on your answers to A through D, decide whether or not to reject the null hypothesis at the ficen significance level. Explain your conclusion in the context of the problem.
Ans: Since the p-value is less than 5% and less than 1% we reject Ho.
The national average yield on municipal bonds is greater than 4.19%
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Cheers,
Stan H.

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