Investment Institutions Usually Have Funds with Different Risk Versus Reward

question 12

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. Given the sample size, the sampling distribution of T can be approximated by the normal distribution as the sample size is greater than 10; T can be assumed to follow the normal distribution with mean and standard deviation ________, respectively.

• A) 126.5 and 30.80
• B) 30.80 and 126.5
• C) 125.5 and 948.75
• D) 30.80 and 984.75

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Definitions:

Sports

Competitive physical activities or games which, through casual or organized participation, aim to use, maintain, or improve physical ability and skills while providing enjoyment to participants.

Socialization

The process by which individuals learn and adopt the norms, values, and behaviors appropriate to their society or social group.

Conflict Theory

A perspective in sociology that emphasizes the social, political, or material inequality of a social group, analyzing the conflict between competing interests.

Functionalism

A framework in sociology that explains social structures and institutions as parts of a cohesive system, each serving a specific function for the stability and continuance of society.