Let x be a random variable representing dividend yield of Australian bank stocks. We may assume that x has a normal distribution with = 2.6%. A random sample of 15 Australian bank stocks has a mean = 7.9%. For the entire Australian stock market, the mean dividend yield is = 6.1%. Do these data indicate that the dividend yield of all Australian bank stocks is higher than 6.1%? Use = 0.01. What is the level of significance?
Answer
a. 0.990
b. 0.010
c. 0.005
d. 0.020
e. 0.995