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

---

Definitions:

Demand Curve

An economic representation that illustrates the quantity of a good that consumers are willing and able to buy at various prices, typically downward sloping from left to right.

Productive Efficiency

A state where goods are produced at the lowest possible cost, utilizing resources effectively without waste.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the number of units produced, showing the cost per unit of output.

Short-run Equilibrium

A state in an economy or market where supply equals demand, considering that some factors (like capital) are fixed in the short term.