3. A stockbroker determines the short-tun direction of the market using the average quarterly return of mutual funds. He believes the next quarter will be profitable when the average is greater than 1%. He will get the complete quarterly return information soon, however right now he has data from a random sample of 100 stock funds. The mean quarterly return in the sample is 1.5% and the standard deviation is 1.9%. Based on this sample, test to see if the broker will feel the next quarter is profitable a. Provide proper null and alternative hypothesis. Explain how you decided between 1 and 2 sided alternatives b. Find the test statistic, and its related P-value. State your conclusion using the 5% significance level. c. Using the normal distribution, compute the test for 3 different values of the true mean: 0.5%, 2%, and 3% conform