The following table presents a portion of the annual returns for Fidelity's Select Automotive Fund (in percent). This mutual fund invests primarily in companies engaged in the manufacturing, the marketing, or the sales of automobiles, trucks, specialty vehicles, parts, tires, and related services.
Year.............................Fidelity Select Automotive Fund
1987................................................................6.54
1988..............................................................20.06
⋮........................................................................⋮
2013.....................................................................46.67
a. State the null and the alternative hypotheses in order to test whether the standard deviation is greater than 35%.
b. What assumption regarding the population is necessary to implement this step?
c. Calculate the value of the test statistic.
d. Use Excel's function (CHISQ.DIST.RT or CHISQ.DIST) to calculate the p-value.
e. At α = 0.05, what is your conclusion?