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Let x be a random variable representing dividend yield of bank stocks. We may assume that...

Let x be a random variable representing dividend yield of bank stocks. We may assume that x has a normal distribution with σ = 2.8%. A random sample of 10 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 6.1 The sample mean is x bar = 5.38%.

Suppose that for the entire stock market, the mean dividend yield is μ = 5.0%.

Do these data indicate that the dividend yield of all bank stocks is higher than 5.0%? Use α = 0.01.

(a) What is the level of significance? (Enter a number.)

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