The Following Table Shows the Observed Frequencies of the Quarterly

question 62

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?

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Definitions:

Susceptibility

The likelihood or predisposition of an individual to be affected by a certain disease or condition.

Hypnosis

A trance-like state characterized by increased focus, concentration, and suggestibility, often used for therapeutic purposes.

Hypnotic Induction

A process or technique designed to put an individual into a state of hypnosis, marked by heightened focus, relaxation, and suggestibility.

Imaginative

The ability or tendency to form new ideas, images, or concepts not present to the senses, often involving creativity and inventiveness.