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:

Predetermined Overhead Rate

A rate calculated at the beginning of a period by dividing estimated total overhead costs by an estimated allocation base, used to apply overhead to products or services.

Automated Bandsaw

A type of bandsaw equipped with automatic features for cutting, which can enhance precision and efficiency in manufacturing processes.

Unused Capacity

The difference between a company's actual production and its maximum possible production without additional capital investment.

Job-Order Costing

An accounting method that tracks the costs associated with creating a specific product or delivering a specific service, making it possible to calculate the profit on individual jobs.