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%

---

Definitions:

Personnel Planning

The process of forecasting an organization's human resource needs and developing strategies to meet these needs, ensuring the right number and type of employees are available when needed.

Standard Error

a statistical measure that gauges the accuracy of sample means by estimating the dispersion of sample means from the population mean.

Forecasting Model

A mathematical or theoretical representation used to predict future values or trends based on historical data.

Naïve Forecast

A forecasting method that assumes future values will be the same as the most recent actual value observed.