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:

Profit Difference

The financial disparity that occurs when the revenues earned by a business exceed or fall short of its expenses.

Incoming Cash

Money that is received by a business or individual, originating from various sources like sales, investments, loans, or other income.

Outgoing Cash

Money that is spent or disbursed by a business, including expenses, purchases, and other payments.

Manufacturing Business

A type of business that changes basic inputs into products that are sold to individual customers.