A Fund Manager Wants to Know If the Annual Rate

question 95

Multiple Choice

A fund manager wants to know if the annual rate of return is greater for growth stocks (sample 1) than for value stocks (sample 2) . The fund manager collects data on the returns of growth and value funds. Below are the sample sizes and rank sums for the Wilcoxon rank-sum test. Using the p-value approach and α = 0.01, the appropriate conclusion is ________.

• A) do not reject the null hypothesis; conclude the median return of growth stock is greater than the median return of value
• B) do not reject the null hypothesis; we cannot conclude the median return of growth stock differs from the median return of value stocks
• C) reject the null hypothesis; conclude the median return of growth stock is greater than the median return of value stocks
• D) reject the null hypothesis; we cannot conclude the median return of growth stock is greater than the median return of value stocks

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