Verbal SAT Scores for Students Randomly Selected from Two Different

question 22

Multiple Choice

Verbal SAT scores for students randomly selected from two different schools are listed below. Use the Wilcoxon rank sum test to find R to test the claim that there is no difference in the scores from each school. $\begin{array}{ccc|ccc}{\text { School 1 }} &&&{\text { School 2 }} \\\hline 580 & 550 & 800 & 520 & 470 & 710 \\510 & 780 & 560 & 460 & 740 & 620 \\610 & 810 & 640 & 720 & 580 & 560 \\620 & 760 & 780 & 660 & 670 & 570\end{array}$

• A)128.5
• B)171.5
• C)75.5
• D)38.5

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Definitions:

Risk Level

The degree of uncertainty associated with an investment's returns, reflecting the potential for loss or lower than expected performance.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements, often used in capital budgeting.

Risk-Free Rate

A benchmark interest rate at which an investment is expected to yield a return without any risk of financial loss, usually associated with government securities.

Market Risk Premium

The extra return that investors require for choosing to invest in the general market rather than risk-free investments.