As an insurance agent, you are studying on the return of your clients’ retirement portfolio to enhance their profits. Accordingly, you want to investigate whether domestic equities appear to have an average of 17.67%

at 5% significance level. Recall that Malaysian equities returned 12.94% with a standard deviation of 11.21%

over 28 months prior. You are willing to assume that the sample is approximately normally distributed.

a. Before proceeding to your finding, you would like to identify whether the standard deviation is statistically lesser than 12%.

b. By using the answer in part

a, proceed with your investigations.