Let x be a random variable representing dividend yield of Au

Let x be a random variable representing dividend yield of Australian bank stocks. We may assume that x has a normal distribution with Mu = 6.4%. If you wanted to test to determine if these data indicate that the dividend yield of all Australian bank stocks is higher than 6.4%, what is the value of the test statistic? Sigma = 2.8 %. A random sample of 16 Australian bank stocks has a sample mean dividend yield of 8.91%. For the entire Australian stock market, the mean dividend yield is

Solution

Test statistic = (xbar - Mu) / (sigma/sqrt n)
= (8.91 - 6.4) / (2.8/sqrt 16)
= 3.586