A Trading Magazine Wants to Determine the Number of Hours

question 87

Multiple Choice

A trading magazine wants to determine the number of hours stockbrokers work each week. In particular, the trading magazine wants to determine if the median numbers worked per week differs from 100 hours. The magazine samples 18 traders. For the Wilcoxon signed-rank test, the value of the test statistic is T = T⁺ = 153. Which of the following are the competing hypotheses to determine if the median number of hours worked per week differs from 100 hours?

• A) H₀: m ≤ 100; H_A: m > 100
• B) H₀: m ≥ 100; H_A: m < 100
• C) H₀: m ≠ 100; H_A: m = 100
• D) H₀: m = 100; H_A: m ≠ 100

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Definitions:

Third Party

An individual or group besides the two primarily involved in a transaction or legal matter, sometimes involved as an intermediary or independent party.

Transaction

An exchange or transfer of goods, services, or funds between two or more parties.

Deadweight Losses

Efficiency losses in an economy occurring when total societal welfare is not maximized, typically as a result of market distortions like taxes or subsidies.

Competitive Equilibrium

A state in a market where demand equals supply, meaning that there's no excess supply or demand at the current price.