Statistics of Business and Finance

STATISTICS OF BUSINESS AND FINANCE
STUDENT NAME/ID
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PART A: CALCULATIONS
1. Returns for Boeing Company (BA), General Dynamics (GD) and S&P Price Index
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Jarque- Berra Test (JB stat)
Formula for JB stat requires sample skew, kurtosis and sample size.
For Boeing Returns
Null hypothesis H0: Boeing Returns is normally distributed.
Alternative hypothesis H1: Boeing Returns is not normally distributed.
The JB stat for BA > Applicable critical value (5.99) and thus, we reject the null hypothesis.
Therefore, Boeing stock returns are not normally distributed.
For General Dynamics Returns
Null hypothesis H0: General Dynamics Returns is normally distributed.
Alternative hypothesis H1: General Dynamics Returns is not normally distributed.
The JB stat for GD > Applicable critical value (5.99) and thus, reject the null hypothesis.
Therefore, General Dynamics Returns is not normally distributed.
2. Mean return of General Dynamics Returns is different from a given percentage 2.8% or not.
Significance level = 5%
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