The following frequency distribution shows the monthly stock returns for Home Depot for the years 2003 through 2007.

Class (in percent) .................... Observed Frequency

Less than -5 .................................... 13

-5 up to 0 ....................................... 16

0 up to 5 ........................................ 20

5 or more ....................................... 11

................................................. n = 60

Over this time period, the following summary statistics are provided:

a. Conduct a goodness-of-fit test for normality at the 5% significance level. Can you conclude that monthly stock returns do not follow the normal distribution?
b. Conduct the Jarque-Bera test at the 5% significance level. Are your results consistent with your answer in part (a)?

Transcribed Image Text:

Standard Mean Median Deviation Skewness Kurtosis 0.31% | 0.43% | 6.49% 0.15 0.38