Using data from the past 25 years, an investor wants to test whether the average return on a stock is greater than 12%. Assume returns are normally distributed with a population standard deviation of 30%.

Click here for the Excel Data File

Year	Return
1	-5.03
2	49.88
3	38.73
4	-14.19
5	30.4
6	-19.86
7	4.37
8	-19.41
9	93.36
10	-5.42
11	-4.48
12	-0.75
13	-38.92
14	-3.91
15	28.82
16	-7.34
17	18.33
18	33.35
19	59.45
20	8.09
21	43.79
22	34.3
23	36.13
24	-56.02
25	76.46

a.Select the null and the alternative hypotheses for the test.

multiple choice 1

a)H₀: 12;H_A:> 12

b)H₀:= 12;H_A: 12

c)H₀: 12;H_A:< 12

b-1.Calculate the value of the test statistic.(Round final answer to 2 decimal places.)

test statistic=

b-2.Find thep-value.

a)p-value < 0.01

b)0.01 p-value < 0.025

c)0.025 p-value < 0.05

d)0.05 p-value < 0.10

e)p-value 0.10