A Fund Manager Wants to Know If the Annual Rate

question 7

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

---

Definitions:

Federal Housing Standards

Regulations and guidelines established by federal authorities to ensure safe, healthy, and affordable living conditions within residential housing.

Extended Families

A family structure that includes not just parents and children but also other relatives such as grandparents, aunts, uncles, and cousins.

Nuclear Families

A family unit consisting of two parents and their children living together as a single household.

Single Parent

A parent who is not living with a spouse or partner and bears most of the day-to-day responsibilities of raising a child or children.