Question: Construct a 99% confidence interval for the average bond rate in Problem 12.9 for a prime interest rate of 10%. Discuss the meaning of this

Construct a 99% confidence interval for the average bond rate in Problem 12.9 for a prime interest rate of 10%. Discuss the meaning of this confidence interval.

in Problem 12.9

Bond Rate Prime Interest Rate

5% ..............16%

12 ..............6

9 ..............8

15 ..............4

7 ..............7

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