Hi! Can you help me with the following question?

Suppose that you want to test the monthly variance of small stock returns over the last five years to see if it differs from the historical value. Since 1926, the average historical monthly variance for small stock returns has been 0.512% and your sample results show a variance of 0.775%. Set up the null and alternative hypothesis and state what test statistic you should use. Then compute your sample test statistic and determine if it is significant at the 5% level. Show your work.

Thanks!