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

Class (in percent) ...................... 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

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 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?

Transcribed Image Text:

Standard Mean Median Deviatio n Skewness Kurtosis 1.16%| 1.79% 738% 0.31 -0.65