The Following Table Shows the Observed Frequencies of the Amount

question 1

Essay

The following table shows the observed frequencies of the amount of assets under management for a sample of 134 hedge funds. The table also contains the hypothesized proportion of each class assuming the amount of assets under management has a normal distribution. The sample mean and standard deviation are 15 billion and 11 billion respectively. a. Set up the competing hypotheses for the goodness-of-fit test of normality for amount of assets under management.
B) Calculate the value of the test statistic and determine the degrees of freedom.
C) Specify the critical value at the 5% significance level.
D) Is there evidence to suggest the amount of assets under management do not have a normal distribution?
E) Are there any conditions that may not be satisfied?

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Definitions:

Natural Resource

Materials or substances occurring in nature which can be exploited for economic gain, such as minerals, forests, and water.

Endangered Species

Species of animals or plants that are at risk of extinction due to threats like habitat loss, climate change, or overexploitation.

Geographic Location

The specific physical position of a place or entity on the Earth's surface, often defined by coordinates such as latitude and longitude.

Firm Size

The scale or magnitude of a firm, often measured by the number of employees, offices, revenue, or market share.