Exercise

Testing gold price returns for normality

The object goldx_q contains quarterly log-returns of the gold price from the beginning of 1990 to the end of 2015.

Test the data for normality using the Jarque-Bera test, then fit a Student t distribution and find the estimated degree of freedom \(\hat{\nu}\) to the nearest integer.

Which of the following statements is true?

Instructions

50 XP

Possible answers

The data pass a test of normality and \(\hat{\nu}=12\).

The data fail a test of normality and \(\hat{\nu}=10\)

The data pass a test of normality and \(\hat{\nu}=10\).

The data fail a test of normality and \(\hat{\nu}=12\).

None of the above are true.