Chapter 11, Problem 26PS

How different are the rates of return of money market ac-counts and certificates of deposit that vary in their term length? The data in MMCDRate. contain the money market, 1-year CD, two-year CD, and five-year CD rates for banks in a suburban area (data extracted from “Consumer Money Rates,� Newsday, June 13, 2013, p. A47).

a. At the 0.05 level of significance. determine whether there is evidence of a difference in the mean rates for these investments.

b. What assumptions are necessary to perform this test?

c. If appropriate, use the Tukey procedure to determine which investments differ. $\left(\text{Use }\alpha \text{ = 0}\text{.05}\text{.}\right)$

d. Was there a significant block effect in their mean rates in this experiment? Explain.