Suppose That 6 Economists Who Work for the Federal Government

question 15

Multiple Choice

Suppose that 6 economists who work for the federal government and 7 university economists were asked to predict the percentage change in the Canada's GDP over the three year period from January 2013 to January 2016. The Wilcoxon rank-sum test was used to determine if the two groups differ in their predictions. The value of the test statistic was calculated to be 29.5. At α = 0.05, we can conclude that

• A) the null hypothesis should be rejected.
• B) the alternative hypothesis should not be rejected.
• C) there is a difference in predictions provided by the two groups of economists.
• D) since TL= 28 < 29.5 < TU = 56, we can conclude that two groups of economists have different predictions.
• E) the null hypothesis should not be rejected; there is no significant difference in predictions provided by the two groups of economists.

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Definitions:

Consolidated Net Income

The total net income of a parent company and its subsidiaries, after intercompany transactions have been eliminated, as presented in the consolidated financial statements.

Statement of Comprehensive Income

A financial statement that presents a company's total income and expenses, including items that have not been realized, providing a complete picture of its overall financial performance.

Goodwill Impairment

A charge that occurs when the market value of goodwill, an intangible asset, drops below its recorded value on the balance sheet, indicating diminished business value.

Discontinued Operation

A component of a business that has been sold, disposed of, or is held for sale, and is reported separately in financial statements.