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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Definitions:

Noncontroversial Issues

Noncontroversial issues refer to topics or matters that generally do not evoke strong disagreements or opposition, often allowing for easier consensus or discussion.

Lean Production

An approach to manufacturing that emphasizes reducing waste and improving efficiency and quality in the production process.

Taylorism

A management theory developed by F.W. Taylor, emphasizing scientific analysis of workflows to improve economic efficiency, especially labor productivity.

Cooperative Management

A management style that emphasizes collaboration, shared decision-making, and democratic practices in an organization.