FILE (Use Excel) The following table presents the returns of Fidelity's Select Automotive Fund; the data are also available on the text website, labeled A u to m o tive. This mutual fund invests primarily in companies engaged in the manufacturing, the marketing, or the sales of automobiles, trucks, specialty vehicles, parts, tires, and related services.

Year Fidelity Select A utom otive Fund 2001 22.82%

2002 – 6.48 2003 43.53 2004 7.11 2005 – 1.75 2006 13.33 2007 0.01 2008 – 61.20 2009 122.28 Source: h ttp ://b iz .y a h o o .c o m .

a. State the null and the alternative hypotheses in order to test whether the standard deviation is greater than 35%.

b. What assumption regarding the population is necessary to implement this step?

c. Calculate the value of the relevant test statistic.

d. Use Excel's function (either CHISQ.DIST.RT or CHISQ.DIST)

to calculate the p -value.

e. At α = 0.05 what is your conclusion? P-399