Let X Be a Random Variable Representing Dividend Yield of Australian

question 14

Multiple Choice

Let x be a random variable representing dividend yield of Australian bank stocks. We may assume that x has a normal distribution with $\sigma$ = 2.3%. A random sample of 11 Australian bank stocks has a mean x = 9.89%. For the entire Australian stock market, the mean dividend yield is $\mu$ = 7.9%. Do these data indicate that the dividend yield of all Australian bank stocks is higher than 7.9%? Use $\alpha$ = 0.05. What is the level of significance?

• A)0.025
• B)0.050
• C)0.100
• D)0.900
• E)0.975

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Definitions:

International Transactions

Financial operations that occur across national borders, involving the exchange of goods, services, or capital between countries.

Intermediary

An entity or person that acts as a mediator or link between parties to facilitate a transaction or agreement.