Arizona municipal bond Problem - Statistical Theory by ClassOf1


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									              Sub: Statistics                                                                  Topic: Statistical Theory

              Arizona municipal bond Problem – Normal Distribution
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              Recently the national average yield on municipal bonds has been μ = 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 populations mean yield for all Arizona municipal bonds is
              greater than the national average? Use α = 0.05. Assume x is normally distributed.

                        a) State the null and the alternate hypothesis.

                        b) Identify 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 containi
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