Let X Be a Random Variable Representing Dividend Yield of Australian

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