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).
5.7 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 = 4.3%. Do these data indicate that the dividend yield of all bank stocks is higher than 4.3%? Use = 0.01.
(a)
What is the level of significance?
State the null and alternate hypotheses (in percent). (Enter != for ≠ as needed.)
H0:

H1:

Will you use a left-tailed, right-tailed, or two-tailed test?
two-tailed
right-tailed
left-tailed
(b)
What sampling distribution will you use? Explain the rationale for your choice of sampling distribution.
We'll use the standard normal, since we assume that x has a normal distribution with unknown .
We'll use the Student's t, since we assume that x has a normal distribution with known .
We'll use the standard normal, since we assume that x has a normal distribution with known .
We'll use the Student's t, since n is large with unknown .
Compute the z value of the sample test statistic. (Round your answer to two decimal places.)
(c)
Find (or estimate) the P-value. (Round your answer to four decimal places.)
P-value =