In a Study to Investigate the Effect of Diet on Reducing

question 30

Multiple Choice

In a study to investigate the effect of diet on reducing cholesterol levels,a random sample of five subjects known to have high cholesterol had their cholesterol measured at the beginning of the study and after 6 months on a special diet.The data are given in the table below. The data are to be analyzed using the Wilcoxon signed rank test.What is the standardized value z of W⁺?

• A)0.40
• B)0.95
• C)1.48
• D)3.51

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Definitions:

Residual Income

The income that remains after subtracting all the costs of capital from the net operating income.

Net Operating Income

Earnings before interest and taxes (EBIT), a measure of a company's profitability from operations.

Minimum Required Return

The minimum return that investors expect to earn from their investment.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity allowed for the actual output, multiplied by the standard price per unit of materials.