A Fund Manager Wants to Know If the Annual Rate

question 60

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. To determine whether the median return of growth funds is larger than the median return of value funds, the competing hypotheses are ________.

• A) H₀: m₁ - m₂ ≥ 0; H_A: m₁ - m₂ < 0
• B) H₀: m₁ - m₂ ≤ 0; H_A: m₁ - m₂ > 0
• C) H₀: m₁ - m₂ ≠ 0; H_A: m₁ - m₂ = 0
• D) H₀: m₁ - m₂ = 0; H_A: m₁ - m₂ ≠ 0

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Definitions:

K

Potassium, an essential dietary mineral and a major electrolyte in the body, key for muscle function and nerve transmission.

pH

pH is a scale used to specify the acidity or basicity of an aqueous solution, with values below 7 being acidic, above 7 being basic (alkaline), and exactly 7 being neutral.

HBr

Hydrobromic acid is created by the dissolution of hydrogen bromide into water, resulting in a potent acid.

K

Often represents Potassium in the periodic table, a vital mineral in the human body and an important element in chemistry.