# Arizona municipal bond Problem - Statistical Theory by ClassOf1

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```									              Sub: Statistics                                                                  Topic: Statistical Theory

Question:
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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