A financial analyst maintains that the risk, measured by the variance, of investing in emerging markets is more than 280(% )2. Data on 20 stocks from emerging markets revealed the following sample results: and s2 = 361 (%)2.

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?