1. You are testing whether the variance of S&P500 returns is different in recessions and expansions. Table below provides the data. Formula the null and alternative hypothesis, identify the test statistic and determine whether or not to reject the null at the 0.05 level.

3. You are testing whether the variance of S&P500 returns is different in recessions and expansions. Table below provides the data. Formula the null and alternative hypothesis, identify the test statistic and determine whether or not to reject the null at the 0.05 level. Measure Expansions (n = 40) Recessions (n = 10)) Standard Deviation 13.5% 20.00%