Let x be a random variable representing dividend yield of bank stocks. We may assume that x has a normal distribution with ? = 2.4%. A random sample of 10 bank stocks gave the following yields (in...


Letx be a random variable representing dividend yield of bank stocks. We may assume thatx has a normal distribution with ? = 2.4%. 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 = 5.38%. Suppose that for the entire stock market, the mean dividend yield is ? = 4.9%. Do these data indicate that the dividend yield of all bank stocks is higher than 4.9%? Use ? = 0.01.


(a) What is the level of significance?


Jun 03, 2022
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