Question
Let x be a random variable representing dividend yield of bank stocks. We may assume that x has a normal distribution with=1.8%.A random sample of10
Letxbe a random variable representing dividend yield of bank stocks. We may assume thatxhas a normal distribution with=1.8%.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=4.7%.Do these data indicate that the dividend yield of all bank stocks is higher than4.7%? 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:= 4.7%;H1:<4.7%; left-tailed
H0:= 4.7%;H1:4.7%; two-tailed
H0:>4.7%;H1:= 4.7%; right-tailed
H0:= 4.7%;H1:>4.7%; 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 standard normal, since we assume thatxhas a normal distribution with unknown.
The Student'st, sincenis large with unknown.
The Student'st, since we assume thatxhas a normal distribution with known.
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.)
Sketch the sampling distribution and show the area corresponding to theP-value. (Select the correct graph.)
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