Question: A financial analyst maintains that the risk, measured by the variance, of investing in emerging markets is more than 280(%). Data on 20 stocks from emerging markets revealed the following sample results: and s2 = 361 (%). Assume that the returns are normally distributed.
a. Specify the competing hypotheses to test the analyst's claim.
b. What is the value of the test statistic?
c. A t α= 0.01 specify the critical value(s).
d. Is the financial analyst's claim supported by the data?