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14) If the test value for the difference between the means of two large samples

ID: 3316721 • Letter: 1

Question

14) If the test value for the difference between the means of two large samples is 2.57 when 14) the critical value is 1.96, what decision should be made? 1.96 2.37 0 A) Reject the null hypothesis. C) Accept the null hypothesis. B) Reject the alternative hypothesis. D) Accept the equality hypothesis. 15) A bond analyst is analyzing the interest rates for equivalent municipal bonds issued by 1 two different states. At = 0.05, is there enough evidence to conclude that there is a difference in the interest rates paid by the two states? State AState B 40 60 3.5 0.02 Sample size Mean interest rate (%) 0.04 Population variance A) No, because the test value-0.02 is inside the critical region-196z .96 B) Yes, because the test value-10.95 is outside the critical region-1.9625 1.96 C) Yes, because the test value 120.00 is outside the critical region-196:S 196 D) Yes, because the test value-300 is outside the critical region-1.96

Explanation / Answer

(14) Answer : Reject the null Hypothesis ( since 2.57 lies in the critical region)

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