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Question : The following frequency distribution shows the distribution


The following frequency distribution shows the distribution of monthly returns (in %) for Starbucks Corp. for the years 2003 through 2007

Monthly Return …………………………………………………………………………. Frequency
Less than –5 …………………………………………………………………………………………... 14
–5 up to 0 ………………………………………………………………………………………………… 9
0 up to 5 ………………………………………………………………………………………………… 18
5 up to 10 ………………………………………………………………………………………………… 11
10 or more ………………………………………………………………………………………………… 8
n = 60

Source: www.yahoo.finance.com.
Over this time period, the following summary statistics are provided:




The following frequency distribution shows the distribution of monthly returns (in -1


a. Conduct a goodness-of-fit test for normality at the 5% significance level. Can you conclude that monthly returns do not follow the normal distribution?
b. Conduct the Jarque-Bera test at the 5% significance level. Can you conclude that monthly returns do not follow the normal distribution?