A Fund Manager Wants to Know If the Annual Rate

question 51

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. Because both sample sizes are at least 10,W can be assumed to follow a normal distribution with a mean and standard deviation of _____________,respectively.

• A) 434.74 and 8100
• B) 8100 and 434.74
• C) 8100 and 189000
• D) 189000 and 8100

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Definitions:

Positive Economics

The branch of economics that concerns itself with describing and explaining economic phenomena as they are, not as they should be.

Normative Economics

An area of economics that analyzes outcomes based on value judgments about what is desirable or what ought to be, rather than what merely is.

Supply and Demand

Fundamental economic concepts that describe how the availability of products (supply) and the desire for them (demand) determine prices.

Scarce

Describes resources or goods that are limited in availability and cannot satisfy all the wants and needs of consumers.