A Mann-Whitney U Test Was Performed to Determine If There

question 12

Multiple Choice

A Mann-Whitney U test was performed to determine if there were differences in the cost of tuition at a Texas state university versus an Oklahoma state university.The total cost, including room, board, and books for 24 freshmen attending a Texas university were computed and compared to the total cost for 20 Oklahoma state university students.The U statistic was calculated to be 38.78 based on the sample sizes of 24 and 20.What is the z value for this test?

• A)0.133
• B)-4.74
• C)240
• D)42.43
• E)8.75

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Definitions:

Simulation Analysis

A method used in risk management that uses statistical models to predict the outcome of a decision under conditions of uncertainty.

Degree Of Operating Leverage

A measure of how sensitive a company's operating income is to a change in its sales volume, indicating financial risk.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment by calculating the present value of all future cash flows minus the initial investment cost.

Simulation Analysis

is a method used in risk management to model possible outcomes of a decision by manipulating variables within mathematical or computer simulations.