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

---

Definitions:

Ending Work In Process

The value of partially completed goods at the end of an accounting period, in production but not yet finished.

FIFO Method

An inventory valuation method that assumes the items purchased or produced first are sold first, thus the remaining inventory consists of items acquired most recently.

Beginning Work In Process

The inventory of partially completed goods at the start of an accounting period.

Inventory Formula

The equation used to calculate the value of a company's inventory, commonly stated as Beginning Inventory + Purchases - Cost of Goods Sold = Ending Inventory.