Let x be a random variable representing dividend yield of bank stocks. We may assume that x has a normal distribution with ? = 2.8%. 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  = 5.38%. Suppose that for the entire stock market, the mean dividend yield is ? = 5.0%. Do these data indicate that the dividend yield of all bank stocks is higher than 5.0%? Use ? = 0.01. (a)  What is the level of significance? (Enter a number.) ____________  Compute the z value of the sample test statistic. (Enter a number. Round your answer to two decimal places.)  __________________ (c)  Find (or estimate) the P-value. (Enter a number. Round your answer to four decimal places.)  _____________

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question

Let x be a random variable representing dividend yield of bank stocks. We may assume that x has a normal distribution with ? = 2.8%. 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  = 5.38%. Suppose that for the entire stock market, the mean dividend yield is ? = 5.0%. Do these data indicate that the dividend yield of all bank stocks is higher than 5.0%? Use ? = 0.01.

(a)

 What is the level of significance? (Enter a number.) ____________

 Compute the z value of the sample test statistic. (Enter a number. Round your answer to two decimal places.)
 __________________

(c)

 Find (or estimate) the P-value. (Enter a number. Round your answer to four decimal places.)
 _____________

Expert Solution
steps

Step by step

Solved in 5 steps with 1 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman