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Let x be a random variable representing dividend yield of bank stocks. We may assume that x has a normal distribution with =3.3%.A random sample

Letxbe a random variable representing dividend yield of bank stocks. We may assume thatxhas a normal distribution with=3.3%.A random sample of10 bankstocks gave the following yields (in percents).5.74.86.04.94.03.46.57.15.36.1The sample mean is= 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 than4.8%? 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?

H0:= 4.8%;H1:<4.8%; left-tailed

H0:= 4.8%;H1:>4.8%; right-tailed

H0:= 4.8%;H1:4.8%; two-tailed

H0:>4.8%;H1:= 4.8%; right-tailed

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

The standard normal, since we assume thatxhas a normal distribution with known.

The Student'st, since we assume thatxhas a normal distribution with known.

The Student'st, sincenis large with unknown.

The standard normal, since we assume thatxhas a normal distribution with unknown.

Compute thezvalue of the sample test statistic. (Enter a number. Round your answer to two decimal places.)

(c)Find (or estimate) theP-value. (Enter a number. Round your answer to four decimal places.)

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