Question

Hypothesis testing (Test only for mean when standard deviation is unknown)

Let X. be a random variable representing dividend yield of Australian bank stocks. We may assume that X has a normal distribution with ? = 24%. A random sample of 10 Australian bank stocks bank stocks gave the following yields: 7.1, 5.5, 4.8, 6.0, 4.9, 4.0, 3.4, 8.5, 5.3, 6.1 ? ( =5.38%. For the entire Austrian stock’s markets, the mean dividend yield is ? =4.7%. Do these data indicate that the dividend yield of all Austrian bank stocks is higher than 4.7%? use ? = 0.01

Answer 1

Let μ be the dividend yield of Australian bank stocks

Hypotheses Statements are

Test statistic (z value as population SD is given)

p-value

It is a right-tailed test and for z value of 0.09, p-value is 0.4643

Decision Rule

If the p-value is less than alpha,0.01, we would reject the null.
Here p-value > 0.01, we accept the Null

Conclusion

There is no statistical evidence to support the claim that dividend yield of all Austrian bank stocks is higher than 4.7%