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Suppose a mutual fund qualifies as having moderate risk if the standard deviation of its monthly rate of return is less than 5%. A mutual-fund rating agency randomly selects 24 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 4.54%. Is there sufficient evidence to conclude that the fund has moderate risk at the α=0.05 level of significance? A normal probability plot indicates that the monthly rates of return are normally distributed. What are the correct hypotheses for this test? The null hypothesis is H0
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