Understandable Statistics: Concepts and Methods

12th Edition

ISBN: 9781337119917

Author: Charles Henry Brase, Corrinne Pellillo Brase

Publisher: Cengage Learning

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Textbook Question

Chapter 8.1, Problem 19P

For Problems 19–24, please provide the following information.

(a) What is the level of significance? State the null and alternate hypotheses. Will you use a left-tailed, right-tailed, or two-tailed test?
(b) Check Requirements What sampling distribution will you use? Explain the rationale for your choice of sampling distribution. Compute the z value of the sample test statistic.
(c) Find (or estimate) the P-value. Sketch the sampling distribution and show the area corresponding to the P-value.
(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level a?
(e) Interpret your conclusion in the context of the application.

19. Dividend Yield: Australian Bank Stocks Let x be a random variable representing dividend yield of Australian bank stocks. We may assume that x has a normal distribution with s 5 2.4%. A random sample of 10 Australian bank stocks gave the following yields.

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 ¯ = 5.38%. For the entire Australian stock market, the mean dividend yield is μ = 4.7% (Reference: Forbes). Do these data indicate that the dividend yield of all Australian bank stocks is higher than 4.7%? Use α = 0.01.

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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Chapter 8.1, Problem 18P

Chapter 8.1, Problem 20P

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Understandable Statistics: Concepts and Methods

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