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Testing for Nonnormality in Farm Net Returns
Author(s) -
Buccola Steven T.
Publication year - 1986
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1241435
Subject(s) - kurtosis , econometrics , normality , statistics , skewness , imputation (statistics) , mathematics , net income , economics , missing data , accounting
Cash returns from farming are expected to be nonnormally distributed under a wide range of joint price‐yield distributions. Adequate testing for such nonnormality requires use of proper whitening procedures as well as appropriate statistics. With tests and sample sizes commonly employed, a false imputation of normality often will be made. However, positive correlation between skewness and kurtosis reduces the likelihood of associated decision errors. These results are illustrated with data for irrigated alfalfa and dryland wheat.