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.Using the Jarque-Bera test for normality,the p-value is __________.
A) less than 0.01
B) between 0.01 and 0.05
C) between 0.05 and 0.10
D) greater than 0.10

Question

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.Using the Jarque-Bera test for normality,the p-value is __________.
A) less than 0.01 
B) between 0.01 and 0.05 
C) between 0.05 and 0.10 
D) greater than 0.10

Quizplus · Accepted Answer

The Jarque-Bera test is used to test the normality of a distribution. If the p-value is less than the chosen significance level (usually 0.05), we reject the null hypothesis that the data is normally distributed. In this case, the p-value is greater than 0.10, which means we fail to reject the null hypothesis and conclude that the data is likely normally distributed.

The Following Frequency Distribution Shows the Monthly Stock Returns for Home