Let x be a random variable representing dividend yield of Australian bank stocks. We may assume that x has a normal distribution with σ = 2.4%. A random sample of 8 Australian bank stocks has a sample mean of x = 7.92%.
For the entire Australian stock market, the mean dividend yield is μ = 8.7%. Do these data indicate that the dividend yield of all Australian bank stocks is higher than 8.7%?
Use α = 0.01. Are the data statistically significant at the given level of significance? Based on your answers, will you reject or fail to reject the null hypothesis?