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:

Borrowers

are individuals, companies, or entities that take out loans from lenders with the obligation of repaying the borrowed amount plus interest or other charges.

Lenders

Individuals, institutions, or entities that provide financial resources to borrowers under agreed terms for repayment with interest.

Inflation

The tempo with which the broad level of prices for services and goods lifts, diminishing the power of purchase.

Real Value

The value of an object, service, or currency adjusted for inflation, representing its purchasing power.