India Fund, Inc. (IFN) is a close-ended equity mutual fund launched by the Blackstone Group, Asset Management Arm. Although it promises impressive returns, it does so at the cost of greater risk. An analyst would like to test if the variance of the returns for IFN is greater than 1,000(%)2. He uses the following sample data to test his claim at a 5% level of significance

a. State the competing hypotheses.

b. Given α = 0.05, specify the critical value(s).

c. Calculate the value of the test statistic. What assumption regarding the IFN returns did you make?

d. Is the variance of returns greater than 1,000(%)²?

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2001 2002 2003 2004 2005 20062007 -28.33%78790 140.63%) 30.91% 63.35%-2.78% 58.30%