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

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Definitions:

SPSS Output

The results and data analyses generated by the Statistical Package for the Social Sciences software after processing information.

Correlation Coefficient

A numerical measure of some type of correlation, meaning a statistical relationship between two variables, ranging from -1 to 1.

Mean

A type of average calculated by summing values and dividing that sum by the number of values.

Average Scores

The mean value calculated by adding all the scores together and dividing by the number of scores.