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. 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

Question

Quizplus · Accepted Answer

The question asks to determine if quarterly returns for mutual funds have a normal distribution, so we need to use a test for normality. The most appropriate test for this situation is the goodness-of-fit test for normality. Option A is incorrect because the question is not about a multinomial experiment. Option B is incorrect because the chi-square test for independence is used for comparing two categorical variables. Option D is incorrect because the Jarque-Bera test is used for testing normality when sample size is large.

Suppose You Want to Determine If the Quarterly Returns for Mutual