Investment Institutions Usually Have Funds with Different Risk Versus Reward

question 3

Multiple Choice

Investment institutions usually have funds with different risk versus reward prospectuses.A trading magazine wants to determine if the returns of high-risk funds is greater than low-risk funds.The magazine records the return of high- and low-risk funds for a sample of 22 institutions.For the Wilcoxon signed-rank test,where D = high-risk return - low-risk return,the value of the test statistic is T = T⁺ = 185.Using the critical value approach and α = 0.10,the appropriate conclusion is _______.

• A) to reject the null hypothesis;we cannot conclude the median difference of the returns is greater than zero
• B) do not reject the null hypothesis;we cannot conclude the median difference of the returns is greater than zero
• C) reject the null hypothesis;conclude the median difference of the returns is greater than zero
• D) do not reject the null hypothesis;conclude the median difference of the returns is greater than zero

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