For the Goodness-Of-Fit Test for Normality, the Null and Alternative

question 50

Multiple Choice

For the goodness-of-fit test for normality, the null and alternative hypotheses are ________.

• A) H₀: Data does not follow a normal distribution, H_A: Data follows a normal distribution
• B) H₀: Data follows a normal distribution, H_A: Data does not follow a normal distribution
• C) H₀: Data follows a normal distribution, H_A: Data are skewed right
• D) H₀: Data follows a normal distribution, H_A: Data are skewed left

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Definitions:

Nonsystematic Variance

The portion of a security's variance that is unique to the specific security and can be mitigated through diversification.

Market Index

An aggregate value produced by combining several stocks or other investment vehicles together and expressing their total values against a base value from a specific date.

Active Portfolio

An active portfolio refers to a collection of investments that are managed and regularly adjusted by portfolio managers in an attempt to outperform the market.