Returns on stock of small ?rms

Reference no: EM13981764

1. From experience, a manager knows that the commissions earned by her salespeople are very well approximated by a normal distribution. The manager wants to test whether the average commission is $439 per month. A random sample of 100 observations is available. What statistical test is best in this situation? Why?

2. Returns on stock of small ?rms have been shown to be symmetrically distributed, but the distributions are believed to be "long-tailed"-not well approximated by the normal distribution. To test whether the average return on a stock of a small ?rm is equal to 12% per year, what test would you recommend? Why?

Reference no: EM13981764

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Returns on stock of small ?rms : Returns on stock of small ?rms have been shown to be symmetrically distributed, but the distributions are believed to be "long-tailed"-not well approximated by the normal distribution. To test whether the average return on a stock of a small ?rm i..

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