Question: Let x be a random variable representing dividend yield of Australian bank stocks. We may assume that x has a normal distribution with s = 2.9%. A random sample of 14 Australian bank stocks has a sample mean of x̄ = 6.35%. For the entire Australian stock market, the mean dividend yield is μ = 5.2%. Do these data indicate that the dividend yield of all Australian bank stocks is different from 5.2%? Use a level of significace of 5% to perform a hypothesis test.

1. State the null and alternate hypotheses, as well as the level of significance.
2. Compute the value of the test statistic.
3. Plot the Standard Normal Distribution Graph OR the Student’s t Distribution Graph and shade the area we are looking for. Put a title, label the axis, and put the appropriate numbers.
4. Find the P-value (or P-value interval).
5. (1pt) Based on your answers for parts AD,

   Reject H 0

   (b) Fail to Reject H 0

   (c) Cannot determine

   1. what is your test conclusion?
   2. How did you come up with this answer?
6. In a few sentences, interpret the results in the context of this exercise.

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