26. Total 2005 CEO compensation for the largest U.S. companies by revenue is reported in the following frequency distribution, along with some summary statistics. Total compensation includes salary, bonuses, stock and incentives, the potential value o f stock options, and gains from stock options exercised.

Total Compensation

(in millions of $) Observed Frequency Less than 5 43 5 up to 10 65 10 up to 15 32 15 up to 20 38 20 or more 60 n = 238 Other summary statistics for CEO compensation (in millions o f $)are as follows:

Mean Median Standard Deviation Skewness Kurtosis 19.03 11.02 27.61 5.26 35.53

a. Conduct a goodness-of-fit test for normality of CEO compensation at the 1% significance level.

b. Conduct the Jarque-Bera test for normality at the 1%

significance level.

c. Does total compensation o f CEOs for the largest U.S.

companies not follow the normal distribution?