The Following Frequency Distribution Shows the Monthly Stock Returns for Home

question 54

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 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%
• B) 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%..
• 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:

Private Wrongs

Acts or omissions that cause harm or injury to specific individuals or entities, leading to civil legal actions.

Classification

The systematic arrangement or categorization of entities or items based on shared characteristics or qualities.

Tort

A civil wrong or breach of duty to another person, recognized by law as grounds for a lawsuit, resulting in an injury or harm that warrants compensation.

Intentional Tort

A wrongful act done on purpose that causes harm to another, including acts such as assault, battery, and defamation, as distinguished from negligence.