Reference no: EM132848258

Let xx5.7 4.8 6.0 4.9 4.0 3.4 6.5 7.1 5.3 6.1 be a random variable representing dividend yield of bank stocks. We may assume that has a normal distribution with = 3.3%. A random sample of 10 bank stocks gave the following yields (in percents).

The sample mean is = 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? (Enter a number.)

State the null and alternate hypotheses. Will you use a left-tailed, right-tailed, or two-tailed test?

(b) What sampling distribution will you use? Explain the rationale for your choice of sampling distribution.

Compute the z 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.)

(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level ?

(e) State your conclusion in the context of the application.