Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Let x be a random variable representing dividend yield of bank stocks. We may assume that x has a normal distribution with o = 2.4%.

image text in transcribed
Let x be a random variable representing dividend yield of bank stocks. We may assume that x has a normal distribution with o = 2.4%. 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 # = 4.5%. Do these data indicate that the dividend yield of all bank stocks is higher than 4.5%? Use a = 0.01. (a) What is the level of significance? (Enter a number.) .01 State the null and alternate hypotheses. Will you use a left-tailed, right-talled, or two-tailed test? O Hol = 4.5%; HE H 4.5%; right- tailed O Ho: H > 4.5%; H1: H = 4.5%; right-tailed O Ho: H = 4.5%; H1: H + 4.5%; two-tailed (b) What sampling distribution will you use? Explain the rationale for your choice of sampling distribution. The standard normal, since we assume that x has a normal distribution with unknown o. The Student's t, since n is large with unknown a. The Student's t, since we assume that x has a normal distribution with known a. The standard normal, since we assume that x has a normal distribution with known a. 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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistics For Business And Economics

Authors: James T. McClave, P. George Benson, Terry T Sincich

12th Edition

032182623X, 978-0134189888, 134189884, 978-0321826237

Students also viewed these Mathematics questions