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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 o = 3.1%.

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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 o = 3.1%. 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 / = 4.4%. Do these data indicate that the dividend yield of all bank stocks is higher than 4.4%? Use a = 0.01. (a) What is the level of significance? State the null and alternate hypotheses. Will you use a left-tailed, right-talled, or two-tailed test? O Ho: M = 4.4%; H, : It # 4.4%; two-tailed O Ho: H = 4.4%; Hil > 4.4%; right-tailed O Ho: H > 4.4%; H1: 1 = 4.4%; right-tailed O Ho: H = 4.4%; H, : H

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