Investment Institutions Usually Have Funds with Different Risk Versus Reward

question 109

Multiple Choice

Investment institutions usually have funds with different risk versus reward prospectuses. A trading magazine wants to determine if the returns of high-risk funds are greater than low-risk funds. The magazine records the return of high- and low-risk funds for a sample of 22 institutions. For the Wilcoxon signed-rank test, where D = high-risk return − low-risk return, the value of the test statistic is T = T⁺ = 185. Assuming that the sampling distribution of T can be approximated by the normal distribution, the value of the z test statistic is ________.

• A) 0.062
• B) 22
• C) 185
• D) 1.899