The Following Table Shows the Observed Frequencies of the Amount

question 45

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:

Agricultural Production

The process and outcome of cultivating crops and livestock for human use and consumption.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual percentage.

Say's Law

A principle attributed to French economist Jean-Baptiste Say, suggesting that supply creates its own demand, meaning production inherently generates the demand for goods and services.

Consumption

The action or process of using goods and services for personal needs or desires, typically considered as a component of GDP.