Recently the national average yield on municipal bonds has been  = 4.19% with a standard...

Recently the national average yield on municipal bonds has been  = 4.19% with a standard deviation of ?= 1.15%. A random sample of 16 Arizona municipal bonds had an average yield of 5.11%. 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 ? is normally distributed.

STEP 1: State the null and alternate hypotheses and the level of significance. Is the test left-tailed, right-tailed or two-tailed? ?0: ?1: ? :

STEP 2: Identify the appropriate sampling distribution (the standard normal z or the student’s t). Sketch the sampling distribution. Find the critical value(s) and indicate on your sketch.

STEP 3: Calculate the sample test statistic. Locate the test statistic on your sketch.

STEP 4: Find the P-value (four decimal places) for your test statistic.

STEP 5: Based on your answers, will you reject or fail to reject the null hypothesis? INTERPRET YOUR CONCLUSION in the context of the problem.

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