Question
Let x be a random variable representing dividend yield of bank stocks. We may assume that x has a normal distribution with = 2.2%. A
Let x be a random variable representing dividend yield of bank stocks. We may assume that x has a normal distribution with = 2.2%. A random sample of 10 bank stocks gave the following yields (in percents).
5.74.86.04.94.03.46.57.15.36.1
The sample mean is x bar = 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 = 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: = 4.4%; H1: < 4.4%; left-tailed
H0: = 4.4%; H1: 4.4%; two-tailed
H0: = 4.4%; H1: > 4.4%; right-tailed
H0: > 4.4%; H1: = 4.4%; right-tailed
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