Let x be a random variable representing dividend yield of bank stocks. We may assume that x has a normal distribution with = 2.7%. 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 = 4.6%. Do these data indicate that the dividend yield of all bank stocks is higher than 4.6%? Use = 0.01.

(a) What is the level of significance?

Compute the z 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.)