A Trading Magazine Wants to Determine the Number of Hours

question 30

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 number of hours 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. Using the p-value approach and α = 0.01, the appropriate conclusion is ________.

• A) to reject the null hypothesis; we can conclude the median number of hours worked per week differs from 100
• B) to reject the null hypothesis; we cannot conclude the median number of hours worked per week differs from 100
• C) do not reject the null hypothesis; we can conclude the median number of hours worked per week differs from 100
• D) do not reject the null hypothesis; we cannot conclude the median number of hours worked per week differs from 100

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Definitions:

Rational Expectations Theory

The hypothesis that individuals form forecasts about the future based on all available information and past experiences, affecting their economic decisions.

Aggregate Supply

The total supply of goods and services that firms in an economy plan on selling during a specific time period.

Government Intervention

The direct or indirect involvement of governmental actions in the market to influence the economy, correct market failures, or protect the public interest.

John Maynard Keynes

A British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments, emphasizing the importance of government intervention during economic downturns.