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 which may not be satisfied?

Question

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 which may not be satisfied?

Quizplus · Accepted Answer

The Answer of 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 which may not be satisfied?

The Following Table Shows the Observed Frequencies of the Amount