The Following Frequency Distribution Shows the Monthly Stock Returns for Home

question 73

Multiple Choice

The following frequency distribution shows the monthly stock returns for Home Depot for the years 2003 through 2007. Over the time period, the following summary statistics are provided: Mean = 0.31%, Standard deviation = 6.49%, Skewness = 0.15, and Kurtosis = 0.38. For the goodness-of-fit test for normality, the null and alternative hypothesis are ________.

• A) H₀: The returns follow a normal distribution with mean 6.49% and standard deviation 0.31%; H_A: The returns do not follow a normal distribution with mean 6.49% and standard deviation 0.31%
• B) H₀: The returns do not follow a normal distribution with mean 6.49% and standard deviation 0.31%; H_A: The returns follow a normal distribution with mean 6.49% and standard deviation 0.31%
• C) H₀: The returns follow a normal distribution with mean 0.31% and standard deviation 6.49%; H_A: The returns do not follow a normal distribution with mean 0.31% and standard deviation 6.49%
• D) H₀: The returns do not follow a normal distribution with mean 0.31% and standard deviation 6.49%; H_A: The returns follow a normal distribution with mean 0.31% and standard deviation 6.49%

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Definitions:

Dual Processing

The principle that our minds operate on two different levels simultaneously: automatic, unconscious processing and conscious, deliberate processing.

Evolutionary Psychologists

Scientists who study the psychological adaptations of humans to the changing physical and social environment, often focusing on how evolution has shaped the mind and behavior.

Behaviorists

Psychologists who focus on observable behaviors and the ways in which environment determines behavior, excluding mental processes.

Cognitive Neuroscientists

Scientists who specialize in studying the neural mechanisms underlying cognition, including thoughts, memories, and language.