A Fund Manager Wants to Know If the Annual Rate

question 29

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. Using the critical value approach and α = 0.01,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) do not reject the null hypothesis;conclude the median return of value stock is greater than the median return of growth stocks
• C) do not reject the null hypothesis;conclude the median return of growth stock differs from the median return of value stocks
• D) reject the null hypothesis;we cannot conclude the median return of growth stocks is greater than the median return of value stocks

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Definitions:

Delusions of Grandeur

A false belief in one’s own superiority, greatness, or power, often seen in psychiatric conditions like schizophrenia or bipolar disorder.

Schizophrenia Prevalence

refers to the proportion of the population that is affected by schizophrenia at a given time.

Developing Country

A nation characterized by a lower level of industrialization, economic activity, and human development index compared to developed countries.

Average Prevalence

The typical rate or extent to which a particular disease or condition is found in a population over a specific time period.