A Fund Manager Wants to Know If the Annual Rate

question 62

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 p-value approach and α = 0.01,the appropriate conclusion is ___________.

• A) do not reject the null hypothesis;conclude the median return of growth stock is greater than the median return of value
• B) do not reject the null hypothesis;we cannot conclude the median return of growth stock differs from the median return of value stocks
• C) reject the null hypothesis;conclude the median return of growth stock is greater than the median return of value stocks
• D) reject the null hypothesis;we cannot conclude the median return of growth stock is greater than the median return of value stocks

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Definitions:

Menopause

The period in a woman's life, typically occurring between 45 and 55 years of age, when menstrual cycles permanently cease, marking the end of reproductive capability.

Prostaglandins

A group of lipid compounds with varying hormone-like effects, such as inducing inflammation, controlling blood flow, and influencing reproductive processes.

Pheromones

Chemical signals released by an organism that influence the behavior or physiology of others of the same species.

Testosterone

A steroid hormone associated with the development of male secondary sexual characteristics and the regulation of libido in both men and women.