Refer to the MegaStat/Excel Output for the Wilcoxon Rank Sum

question 9

Multiple Choice

Refer to the MegaStat/Excel output for the Wilcoxon rank sum test given in the table below. At a significance level of .05,which one of the following rejection point conditions is correct regarding the null hypothesis,H₀: D₁ and D₂ are identical probability distributions,and the alternative hypothesis of H_a: D₁ is shifted to the left of D₂.

• A) We reject H₀ and conclude that there is very strong evidence that the median value of the first sample significantly differs from the median value of the second sample.
• B) We reject H₀ and conclude that there is very strong evidence that the median value of the first sample is significantly less than the median value of the second sample.
• C) We do not reject H₀ and conclude there is not sufficient evidence that the median value of the first sample is significantly less than the median value of the second sample.
• D) We do not reject H₀ and conclude there is not sufficient evidence to conclude that the median value of the first sample is not significantly different than the median value of the second sample.
• E) We do not reject H₀ and conclude there is very strong evidence that the median value of the first sample is significantly less than the median value of the second sample.

Understand the concept of intrinsic value in both put and call option contracts.

Calculate the net profit or loss on various option investments.

Understand and calculate the conversion value of convertible bonds.

Understand the pricing of options using the Black-Scholes Model.

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Definitions:

Practicality

The aspect of being concerned with the actual doing or use of something rather than with theory and ideas.

Empirical Approach

A method of gaining knowledge through direct observation, experience, or experimentation, emphasizing evidence-based conclusions.

Humanistic Psychology

A psychological perspective that emphasizes the study of the whole person and inner feelings to understand behavior.

Structuralism

An early school of thought promoted by Wundt and Titchener; used introspection to reveal the structure of the human mind.