1. Test for Normal Distribution

2. Test of Normality - 1 Graphical Test
Histogram
Check shape: skewness, outliers
Normal Probability Plot
Check shape: straight, convex,
S-shaped

3. Construction of a Normal Probability Plot
Alternative estimates of the cumulative relative frequency of an observation
pi = (i - 0.5)/ n
pi = i / (n+1)
pi = (i ) / (n+0.25)
Estimate of the percentile | Normal
Standardized Q(pi) = NORMSINV(pi)
Q(pi) = NORMINV(pi, mean, stand. dev.)

4. Non-Normal Populations
Flat Skewed
Expected | Normal
Data
Expected | Normal
Data

5. Test of Normality - 2 Test Statistics
Stand. Dev.
Skewness
Kurtosis

6. The Jarque-Bera Test
If the population is normal and the data are random, then:
follows approximately c2 with the # 0f degrees of freedom 2.
Reject H0 if JB > 6