that x has a normal distritution with \" 2.5%. A random sample of iO benk stocks
ID: 3326824 • Letter: T
Question
that x has a normal distritution with " 2.5%. A random sample of iO benk stocks gave the towing yesinpetes 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%. Su ppose that for the entire stock market, the mean dividend yield ·45%, Dothese sta ndate that the aldend yedof 1 baek tes (a) What is the level of significance? State the null and alternate hypotheses. wil you use a left-tailed, right-tailed, or two-tailed test? 0 Ho: -4.5%; HI : * 45%; two-tailed Mo' . 4.5%; H1 : > 4.5%; right-tailed 0 > 4.5%; H11 . 4.5% right-taled Mo' ,. 4.5%; Hi :Explanation / Answer
We need to calculate if stock sample mean is higher than 4.5. Thus, we need to check only upper value. Thus, right tailed test
When sample standard deviation is given – t test
We are given population std deviation = 2.5 %. Thus, Z test
Option A
Thus, Z = (5.38-4.5)/ (2.5/sqrt(10)) = 1.11
Sketch, Thus right of Z = 1.15 Option 4
Thus, we accept the null hypothesis
Option C
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