Question: Let x be a random variable representing dividend yield of bank stocks. We may assume that x has a normal distribution with = 2.0%. A
Let x be a random variable representing dividend yield of bank stocks. We may assume that x has a normal distribution with = 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 = 4.8%. Do these data indicate that the dividend yield of all bank stocks is higher than 4.8%? Use = 0.01. (a) What is the level of significance? State the null and alternate hypotheses (in percent). (Enter != for as needed.)
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