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:

Extinction

In psychology, the gradual weakening and disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period of no exposure to the conditioned stimulus.

Generalization

The process by which individuals apply knowledge or behavior learned in one context to different but similar contexts.

Discrimination

Discrimination is the unfair or prejudicial treatment of people based on characteristics such as race, age, sex, or disability instead of individual merit.