The following table lists the annual returns (in percent) for a top-perform ing mutual fund, ING Russia, over the last decade.

Year Return Year Return 2000 − 17.80 2005 70.94 2001 80.32 2006 67.52 2002 24.72 2007 30.69 2003 75.88 2008 − 71.51 2004 5.91 2009 129.97 Sourcewww.finance.yahoo.com

a. Specify the competing hypotheses in order to determine whether the median return differs from 8%.

b. Calculate the value of the test statistic. Do not assume the normal approximation for T.

c. At the 10% significance level, what is the decision rule?

d. Does the median return differ from 8%?