Which of the Following Is the Most Likely Result of a Claim

question 21

Multiple Choice

Which of the following is the most likely result of a claim of preferential payment based on the payment to the jewelry store?

• A) The payment was not preferential because it was for a consumer good and was not made within 30 days of the filing of the bankruptcy petition.
• B) The payment is presumed preferential on the basis that it was made within 90 days of the filing of the bankruptcy petition only if the trustee is able to establish that the jewelry store received more through the transfer than the jewelry store would have received through bankruptcy proceedings.
• C) The payment is presumed preferential on the basis that it was made within 90 days of the filing of the bankruptcy petition only if the trustee is able to establish Mindy's insolvency at the time and that the jewelry store received more through the transfer than the jewelry store would have received through bankruptcy proceedings.
• D) Because it was for a consumer good, the payment was not preferential unless the bankruptcy trustee can prove intent to defraud.
• E) The payment was preferential because it was made within 90 days of the filing of the bankruptcy petition.

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Definitions:

Wilcoxon Rank Sum

A nonparametric statistical hypothesis test used to compare two independent samples to determine if they come from the same distribution.

Approximate Distribution

A statistical term referring to the distribution that is assumed for a dataset based on certain approximations or assumptions.

Sign Test

A non-parametric test used to determine if there is a median difference between paired observations.

Matched Pairs

Matched pairs refer to a study design in statistics where pairs of subjects are matched in terms of key variables that are thought to affect the outcome of interest, and then compared on the outcome, often used to control for confounding variables.