The Following Table Shows the Observed Frequencies of the Quarterly

question 85

Essay

The following table shows the observed frequencies of the quarterly returns for a sample of 60 hedge funds.The table also contains the hypothesized proportions of each class assuming the quarterly returns have a normal distribution.The sample mean and standard deviation are 3.6% and 7.4% respectively.
A)Set up the competing hypotheses for the goodness-of-fit test of normality for the quarterly returns.
B)Calculate the value of the test statistic and determine the degrees of freedom.
C)Compute the p-value.Does the evidence suggest that the quarterly returns do not have a normal distribution at the 10% significance level?

• A)Set up the competing hypotheses for the goodness-of-fit test of normality for the quarterly returns.
• B)Calculate the value of the test statistic and determine the degrees of freedom.
• C)Compute the p-value.Does the evidence suggest that the quarterly returns do not have a normal distribution at the 10% significance level?

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Definitions:

Trade Permits

Authorizations given by government or other regulatory bodies allowing businesses to engage in foreign trade activities.

Pollution Reduction

Actions or initiatives undertaken to decrease the amount of pollutants released into the environment.

MC Of Reducing

The marginal cost associated with reducing an output or activity, usually referring to cutting down on production or operational processes.

Marginal Social Benefit

The additional benefit to society from consuming or producing one more unit of a good or service.