A Trading Magazine Wants to Determine the Number of Hours

question 98

Multiple Choice

A trading magazine wants to determine the number of hours stockbrokers work each week.In particular,the trading magazine wants to determine if the median number of hours worked per week differs from 100 hours.The magazine samples 18 traders.For the Wilcoxon signed-rank test,the value of the test statistic is T = T⁺ = 153.Using the critical value approach and α = 0.01,the appropriate conclusion is _________________________________________________________________________________.

• A) to reject the null hypothesis;we cannot conclude the median number of hours worked per week differs from 100
• B) do not reject the null hypothesis;conclude the median number of hours worked per week differs from 100
• C) do not reject the null hypothesis;we cannot conclude the median number of hours worked per week differs from 100
• D) reject the null hypothesis;conclude the median number of hours worked per week differs from 100

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Definitions:

Perfectly Positively Correlated

A relationship between two variables where they move in the same direction at the same time with a correlation coefficient of +1.

Portfolio Risk

The potential for loss or underperformance across a collection of investments held by an individual or institution.

Expected Return

The anticipated return on an investment, taking into account all possible outcomes, their probabilities, and their corresponding returns.

Required Return

The minimum rate of return on an investment that is necessary for an investor to consider making that investment.