Show necessary work please Dividend Yield Australia Bank Sto

Dividend Yield: Australia Bank Stocks Let x be a random variable representing dividend yield of Australian bank stocks. We may assume that x has a normal distribution with sigma = 2.4%. A random sample of 10 Australian 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. The sampIe mean is bar x = 5.38%. For the entire Australian stock market, the dividend yield is mu = 4.7% (Reference: Forbes). Do these data indicate that the dividend yield of all Australian bank stocks is higher than 4.7%? Use

Solution

step1:

state hypothesis

Ho: u >4.7%

Ha: u<=4.7%

step2:

find test static

test static = X -mean/std/sqrt(n)

= 5.38 - 4.7/2.4/sqrt(10)

= 0.89598

step3:

find p-value

using normal distribution table

P-value = 0.1851

step4:

since P-value is greater than level of significance

we reject H0

conclusion:

There not enough evidence to conclude that the dividdend yield of all the bank stocks is higher than 4.7%