Exhibit 20

question 54

Multiple Choice

Exhibit 20.6.A fund manager wants to know if the annual rate of return is greater for growth stocks (1) than value stocks (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. Refer to Exhibit 20.6.Using the critical value approach,the appropriate conclusion is:

• A)Reject the null hypothesis,conclude the median return of growth stock is greater than the median return of value stocks
• B)Reject the null hypothesis,conclude the median return of value stock is greater than the median return of growth stocks
• C)Reject the null hypothesis,conclude the median return of growth stock differs from the median return of value stocks
• D)Reject the null hypothesis,cannot conclude the median return of growth stocks is greater than the median return of value stocks

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Definitions:

Prime Costs

The combined direct costs of raw materials and labor that are directly attributable to the production of a product.

Conversion Costs

The sum of direct labor and overhead costs involved in converting raw materials into finished goods.

Electricity Costs

The expenses incurred for the consumption of electricity, often classified as a variable cost in production or operations.

Product Cost

The total cost incurred to create a product, typically including direct labor, materials, and overhead expenses.