A Bond Analyst Is Analyzing the Interest Rates for Equivalent $\ddagger = .05$

question 37

Multiple Choice

A bond analyst is analyzing the interest rates for equivalent provincial bonds and Canada bonds. At $\ddagger = .05$ , is there a difference in the interest rates paid?
$\begin{array}{|l|c|c|}\hline & \text { Canada bonds } & \text { Provincial bonds } \\\hline \text { Sample size } & 80 & 40 \\\hline \text { Mean interest rate }(\%) & 3.9 & 4.15 \\\hline \text { Sample variance } & 0.01 & 0.03 \\\hline\end{array}$

• A) Yes, because the test value -8.45 is outside the interval (-1.96, 1.96)
• B) Yes, because the test value -2.86 is outside the interval (-1.96, 1.96)
• C) Yes, because the test value 71.43 is outside the interval (-1.96, 1.96)
• D) No, because the test value -0.03 is inside the interval (-1.96, 1.96)

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Definitions:

Chromosomes

Structures within living cells that contain DNA and carry genetic information necessary for cell growth, division, and function.

Conception

The process of becoming pregnant involving fertilization, where an egg and sperm combine to form a zygote.

Multifactorial Transmission

The process by which traits or diseases are passed from generation to generation through a combination of genetic and environmental factors.

Natural Selection

A fundamental mechanism of evolution, where organisms better adapted to their environment tend to survive and reproduce, passing on advantageous traits.