Question: . [0.121022 Points] Let x be a random variable representing dividend yield of bank stocks. We may assume that x has a normal distribution with

 . [0.121022 Points] Let x be a random variable representing dividend

. [0.121022 Points] Let x be a random variable representing dividend yield of bank stocks. We may assume that x has a normal distribution with a = 3.2%. A random sample of 10 bank stocks gave the following yields (in percents). 5.7 4.8 6.0 4.9 4.0 3.4 6.5 7.]. 5.3 6.1 The sample mean is E = 5.38%. Suppose that for the entire stock market, the mean dividend yield is 4' = 5.0%. Do these data indicate that the dividend yield of all bank stocks is higher than 5.0%? Use a = 0.01. (a) What is the level of signicance? State the null and alternate hypotheses. Will you use a left'tailed, rithailed, or twoAtailed test? ' H0211 = 5%; H1: u 5%; H1: l4 = 5%; righttailed , H0: u = 5%; H1: II > 5%; righttailed (b) What sampling distribution will you use? Explain the rationale for your choice of sampling distribution. The standard normal, since we assume that x has a normal distribution wrth unknown 0. The Student's t, since n is large with unknown a. The Student's t, since we assume that x has a normal distribution with known a. The standard normal, since we assume that x has a normal distribution with known 0'. Compute the 2 value of the sample test statistic. (Round your answer to two decimal places.) (c) Find (or estimate) the P-value. (Round your answer to four decimal places.)

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