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Qusetion: Returns on an investment have been known to be normally distributed with mean 11% (annualized rate) and standard deviation 2%. A brokerage firm wants to test the null hypothesis that this statement is true and collects the following returns data in percent (assume a random sample):

8, 9, 9.5, 9.5, 8.6, 13, 14.5, 12, 12.4, 19, 9, 10, 10, 11.7, 15, 10.1, 12.7, 17, 8, 9.9, 11, 12.5, 12.8, 10.6, 8.8, 9.4, 10, 12.3, 12.9, 7.

Conduct the analysis and state your conclusion.

Statistics and Probability, Statistics

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