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

Confidence Interval Sample statistic Usually a point estimate Used to estimate population parameter Sample point estimate +/- margin of error Lower endpoint sample point estimate upper endpoint Margin of error Margin of error Measure of variability associated with point of estimate at desired level of confidence Small margin of error means higher precision Higher desired confidence level means a larger margin of error Lowest value in the computed confidence level =lower endpoint Highest value in the computed confidence level= higher endpoint Confidence interval for p Point estimate +/- margin of error Margin of