American Public University

Let x be a random variable representing dividend yield of bank stocks. We may assume that x has a normal distribution with g = 2.0%. 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 7.1 5.3 6.1 The sample mean is x = 5.38%. Suppose that for the entire stock market, the mean dividend yield is , = 4.9%%. Do these data indicate that the dividend yield of all bank stocks is higher than 4.9%7 Use a = 0.01. (a) What is the level of significance? (Enter a number.) 0.01 State the null and alternate hypotheses. Will you use a left-tailed, right-tailed, or two-tailed test? OH ! u > 4.9%; H, : A = 4.9%; right-tailed O Holy = 4.9%: H.: # # 4.9%%; two-tailed O Hot H = 4.9%; H. : A 4.9%; right-tailed (b) What sampling distribution will you use? Explain the rationale for your choice of sampling distribution. O The standard normal, since we assume that x has a normal distribution with known a. O The standard normal, since we assume that x has a normal distribution with unknown c. O The Student's t, since n is large with unknown g. O The Student's t, since we assume that x has a normal distribution with known a. Compute the 2 value of the sample test statistic. (Enter a number, Round your answer to two decimal places.) (c) Find (or estimate) the P-value. (Enter a number, Round your answer to four decimal places.) Sketch the sampling distribution and show the area corresponding to the P-value. (Select the correct graph.) CHORE C CHOICE A