Question 323130: Here is the problem...see below for my question...
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
Sample size 80
Mean interest rate (%) 3.7
Sample variance 0.02
State B
Sample Size 70
Mean Interest Rate (%) 4.25
Sample Variance 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)
I used the t-test to figure this and got the answer 810, which does not match any of the answers.
Could you please let me know what formula/steps that should be used on this?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! I ran a 2-SampleTtest on a TI-84 and got
test stat = t = -21.1137
p-value approximately zero: 2.34x10^-44
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Conclusion: Reject Ho: u1-u2=0
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Cheers,
Stan H.
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