Question: Let x be a random variable representing dividend yield of bank stocks. We may assume that x has a normal distribution with o = 2.8%.

 Let x be a random variable representing dividend yield of bank

Let x be a random variable representing dividend yield of bank stocks. We may assume that x has a normal distribution with o = 2.8%. 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 u = 4.5%. Do these data indicate that the dividend yield of all bank stocks is higher than 4.5%? Use a = 0.01. (a) What is the level of significance? (Enter a number.) State the null and alternate hypotheses, Will you use a left-tailed, right-talled, or two-tailed test? O Ho: H = 4.5%; H,: H > 4.5%; right-tailed OHoil > 4.5%; H: 1 = 4.5%; right-tailed O Holl = 4.5%; H : H # 4.5%; two-tailed O Ho: H = 4.5%; H: |

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