Suppose You Want to Determine If the Quarterly Returns for Mutual

question 80

Multiple Choice

Suppose you want to determine if the quarterly returns for mutual funds have a normal distribution when your available data is partitioned into some non-overlapping intervals with given frequencies.The most appropriate test is the _____________________________________.

• A) goodness-of-fit test for a multinomial experiment
• B) chi-square test for independence
• C) goodness-of-fit test for normality
• D) Jarque-Bera test for normality

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Definitions:

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Satisficing

A decision-making strategy that entails searching through the available alternatives until an acceptability threshold is met, rather than seeking the optimal solution.

Problem Frame

A perspective or way of viewing and understanding a problem within a specific context, guiding problem-solving efforts.

Not-invented-here Bias

A cognitive bias in organizations and individuals that undervalues or dismisses innovations or solutions that originated elsewhere.