Recently the national average yield on municipal bonds has been ? = 4.19%. A ran
ID: 2907635 • Letter: R
Question
Recently the national average yield on municipal bonds has been ? = 4.19%. A random sample of 16 Arizona municipal bonds had an average yield of 5.11% with a sample standard deviation of s = 1.15%. Does this indicate that the population mean yield for all Arizona municipal bonds is greater than the national average? Use a 5% level of significance. Assume x is normally distributed. a. State the null and alternate hypotheses and the level of significance. Is the test left-tailed, right-tailed, or two-tailed?
b. Identify the appropriate sampling distribution: the standard normal or the Student’s t. What is the value of the sample test statistic?
c. Find or estimate the P-value.
d. Based on your answers for parts (a) through (c), will you reject or fail to reject the null hypothesis?
Explanation / Answer
X?= 5.11
n= 16
s= 1.15
df= 16-1-15
H0: u= 4.19
H1: u> 4.19 ......right tail test
alpha= 0.05
Test Statictics
T=(X?-u)*sqrt(n)/s
=(5.11-4.19)*sqrt(16)/1.15
=3.2
P-value=0.002981924
rounded p-value=0.003
Decision making
P-value ? Alpha Reject H0
0.003 <0.05
there is enough evidence to support the claim that population mean yield for all Arizona municipal bonds is greater than the national average.
.............
answer
a) H0: u=4.19
H1: u> 4.19 ......right tail test
b) t- test statistics =3.2
c) p-value-0.00298
d) Reject null hypothesis.
.........................
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