Deck 20: Nonparametric Tests

Question 1

Parametric tests typically assume the underlying population to be normally distributed.

Answer 1

True

Question 2

The Wilcoxon signed-rank test for a population median does not assume anything about the distribution of the population.

Answer 2

False

Question 3

For the Spearman rank correlation test we can use the normal distribution approximation to implement a z test only if n is greater or equal to ___.

Answer 3

10

Question 4

The Kruskal-Wallis test is a nonparametric alternative to the _________ test that can be used when the assumptions of normality and/or equal population variances cannot be validated.

Question 5

Nonparametric tests do not require a level of measurement as strong as it is necessary for parametric tests.

Question 6

The sign test on a matched-pairs sample is similar to the Wilcoxon signed-rank test but applied to ordinal data.

Question 7

If we wish to compare central tendency from nonnormal population,then the Wilcoxon signed-rank test serves as the nonparametric counterpart to the __________ test.

Question 8

If the distributional assumptions of a parametric test are valid yet we choose to use a nonparametric test,the nonparametric test is more powerful.

Question 9

The Wilcoxon rank-sum test is based completely on the _____ of the observations from the two independent samples.

Question 10

Nonparametric tests use fewer and weaker __________ than those associated with parametric tests.

Question 11

When conducting a hypothesis test for the population median m is not equal to,greater than,or less than _____________m₀,the value of the population median postulated in the null hypothesis.

Question 12

Pearson's correlation coefficient is used as the nonparametric counterpart to the regular correlation coefficient formula.

Question 13

In the Wald-Wolfowitz test a _____ is an uninterrupted sequence of one letter,symbol,or attribute.

Question 14

The Kruskal-Wallis test is always a _____-tailed test.

Question 15

Parametric tests are distribution-free tests.

Question 16

The null hypothesis of the Wald-Wolfowitz runs test is the elements do not occur randomly.

Question 17

The Kruskal-Wallis test is the nonparametric alternative to one-way ANOVA.

Question 18

The Wilcoxon rank-sum test is used as a nonparametric counterpart to the matched-pairs t test.

Question 19

The sign test is used to determine whether there are significant _______ differences in the population.

Question 20

The method of runs above and below the median is especially useful in detecting trends and cyclical patterns in ________ data.

Question 21

For the Wald-Wolfowitz runs test with the sample sizes being at least 10,the test statisticR can be assumed to follow the z distribution.The standard deviation of the distribution of R is computed as ________.

A)
B)
C)
D)

Question 22

The nonparametric test for two population medians under independent sampling is known as ___________________.

A) Wilcoxon signed-rank test
B) Wilcoxon rank-sum test
C) Kruskal-Wallis test
D) Wald-Wolfowitz runs test

Question 23

A pawn shop claims to sell used Kindles for about the same price as Amazon or eBay.Both online retailers sell used Kindles for around $150.Below are recent Kindle sales prices for the pawn shop. Which of the following is the value of the test statistic?

A) 6
B) 14
C) 20
D) 1

Question 24

The test statistic for the sign test is where ________________________.

A) is the sample proportion of plus signs
B) is the sample proportion of minus signs
C) is the sample mean of plus signs
D)

Question 25

For the Wilcoxon signed-rank test with n ≥ 10,the test statistic is assumed to follow a normal distribution with mean ____________.

A) μ_T = 2n(2n + 1)/2
B) μ_T = n(n + 1)/4
C) μ_T = n(n - 1)/4
D) μ_T = n(2n + 1)/3

Question 26

Which of the following is the test statistic for the sign test?

A)
B)
C)
D)

Question 27

For the Wilcoxon rank-sum test with the sample sizes being at least 10,the test statistic can be assumed to follow a normal distribution with mean __________________________.

A)
B)
C)
D)

Question 28

For the Wilcoxon signed-rank test with n ≥ 10,the test statistic is assumed to follow a normal distribution with standard deviation ____________________.

A)
B)
C)
D)

Question 29

The nonparametric test for the correlation between two variables is known as the ______________________.

A) Wilcoxon signed-rank test
B) Wilcoxon rank-sum test
C) Kruskal-Wallis test
D) Spearman's rank correlation test

Question 30

For the Wald-Wolfowitz runs test with the sample sizes being at least 10,the test statisticR can be assumed to follow the z distribution.The mean of the distribution of R is computed as ________.

A)
B)
C)
D)

Question 31

For the Wilcoxon rank-sum test with the sample sizes being at least 10,the test statistic can be assumed to follow a normal distribution with mean __________________________.

A)
B)
C)
D)

Question 32

The nonparametric test for a single population median is known as the ______________________.

A) Wilcoxon signed-rank test
B) Wilcoxon rank-sum test
C) Kruskal-Wallis test
D) Wald-Wolfowitz runs test

Question 33

A pawn shop claims to sell used Kindles for about the same price as Amazon or eBay.Both online retailers sell used Kindles for around $150.Below are recent Kindle sales prices for the pawn shop. At the 5% significance level,the critical value is ____.

A) 2
B) 19
C) 0
D) 28

Question 34

Which of the following is the test statistic for the Kruskal-Wallis test?

A)
B)
C)
D)

Question 35

Which of the following is the sample Spearman rank correlation coefficient?

A)
B)
C)
D)

Question 36

The nonparametric test for ordinal data under matched-pairs sampling is ______________________.

A) Wilcoxon signed-rank test
B) Wald-Wolfowitz runs test
C) the sign test
D) Spearman's rank correlation test

Question 37

A pawn shop claims to sell used Kindles for about the same price as Amazon or eBay.Both online retailers sell used Kindles for around $150.Below are recent Kindle sales prices for the pawn shop. Which of the following are the competing hypotheses to determine if the median sale price is greater than $150?

A) H₀:m ≤ 150;H_A:m > 150
B) H₀:m ≥ 150;H_A:m < 150
C) H₀:m ≠ 150;H_A:m = 150
D) H₀:m = 150;H_A:m ≠ 150

Question 38

If n ≥ 10,the Spearman rank correlation coefficient can be assumed to follow a normal distribution with _______________________.

A) µ = 0 and
B) µ = 1 and
C) µ = 0 and
D) µ = 0 and

Question 39

The nonparametric test to determine if a sequence is random is _____________________.

A) Wilcoxon signed-rank test
B) Wald-Wolfowitz runs test
C) the sign test
D) Spearman's rank correlation test

Question 40

For n_i ≥ 5,the test statistic,H,for the Kruskal-Wallis test is assumed to follow ____________.

A) the standard normal distribution
B) the F distribution with k −1 degrees of freedom in the numerator and denominator
C) the chi-square distribution with k −1 degrees of freedom
D) the t distribution with k −1 degrees of freedom

Question 41

A company that produces financial accounting software wants to offer better training to its customers.The training is intended to decrease the amount of time required to do complicated accounting calculations.For seven individuals,the amount of time (in minutes)to complete a complicated calculation is determined before and after completing the new training. The p-value for the test is _____________.

A) less than 0.01
B) between 0.01 and 0.025
C) between 0.025 and 0.05
D) greater than 0.05

Question 42

A trading magazine wants to determine the number of hours stockbrokers work each week.In particular,the trading magazine wants to determine if the median number of hours worked per week differs from 100 hours.The magazine samples 18 traders.For the Wilcoxon signed-rank test,the value of the test statistic is T = T⁺ = 153.Using the critical value approach and α = 0.01,the appropriate conclusion is _________________________________________________________________________________.

A) to reject the null hypothesis;we cannot conclude the median number of hours worked per week differs from 100
B) do not reject the null hypothesis;conclude the median number of hours worked per week differs from 100
C) do not reject the null hypothesis;we cannot conclude the median number of hours worked per week differs from 100
D) reject the null hypothesis;conclude the median number of hours worked per week differs from 100

Question 43

A pawn shop claims to sell used Kindles for about the same price as Amazon or eBay.Both online retailers sell used Kindles for around $150.Below are recent Kindle sales prices for the pawn shop. The p-value for the test is _______________.

A) less than 0.01
B) between 0.025 and 0.01
C) between 0.05 and 0.025
D) greater than 0.05

Question 44

A trading magazine wants to determine the number of hours stockbrokers work each week.In particular,the trading magazine wants to determine if the median numbers worked per week differs from 100 hours.The magazine samples 18 traders.For the Wilcoxon signed-rank test,the value of the test statistic is T = T⁺ = 153.Inasmuch as the sample size is more than 10,T can be assumed normally distributed with mean and standard deviation ___________,respectively.

A) 85.50,527.25
B) 22.96,527.25
C) 22.96,85.50
D) 85.50,22.96

Question 45

Investment institutions usually have funds with different risk versus reward prospectuses.A trading magazine wants to determine if the returns of high-risk funds are 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.Assuming that T follows a normal distribution,the value of the test statistic is _____.

A) 0.062
B) 1.899
C) 185
D) 1.899

Question 46

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.At the 10% significance level,the critical value is _____.

A) 1.645
B) 1.96
C) 2.33
D) 2.575

Question 47

A trading magazine wants to determine the number of hours stockbrokers work each week.In particular,the trading magazine wants to determine if the median number of hours worked per week differs from 100 hours.The magazine samples 18 traders.For the Wilcoxon signed-rank test,the value of the test statistic is T = T⁺ = 153.At the 1% significance level,the critical value is _____.

A) 1.645
B) 1.96
C) 2.33
D) 2.575

Question 48

A company that produces financial accounting software wants to offer better training to its customers.The training is intended to decrease the amount of time required to do complicated accounting calculations.For seven individuals,the amount of time (in minutes)to complete a complicated calculation is determined before and after completing the new training. For the Wilcoxon signed-rank test for the matched-pairs sample,the competing hypotheses are ________________________.

A) H₀:m_D ≤ 0;H_A:m_D > 0
B) H₀:m_D = 0;H_A:m_D ≠ 0
C) H₀:m_D ≠ 0;H_A:m_D = 0
D) H₀:m_D ≥ 0;H_A:m_D < 0

Question 49

A pawn shop claims to sell used Kindles for about the same price as Amazon or eBay.Both online retailers sell used Kindles for around $150.Below are recent Kindle sales prices for the pawn shop. Using the p-value approach and α = 0.05,the appropriate conclusion is ______________________________________.

A) to reject the null hypothesis;we cannot conclude the median sale price is greater than $150
B) do not reject the null hypothesis;we cannot conclude the median sale price is greater than $150
C) do not reject the null hypothesis;conclude the median sale price is greater than $150
D) reject the null hypothesis;conclude the median sale price is greater than $150

Question 50

Investment institutions usually have funds with different risk versus reward prospectuses.A trading magazine wants to determine if the returns of high-risk funds are 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.Inasmuch as the sample size is greater than 10,T can be assumed to follow the normal distribution with mean and standard deviation _________________,respectively.

A) 126.5 and 30.80
B) 30.80 and 126.5
C) 125.5 and 948.75
D) 30.80 and 984.75

Question 51

Investment institutions usually have funds with different risk versus reward prospectuses.A trading magazine wants to determine if the returns of high-risk funds are 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.For the Wilcoxon signed-rank test for the matched-pairs,the competing hypotheses are _______________________________.

A) H₀:m_D = 0;H_A:m_D ≠ 0
B) H₀:m_D ≤ 0;H_A:m_D > 0
C) H₀:m_D ≠ 0;H_A:m_D = 0
D) H₀:m_D ≥ 0;H_A:m_D < 0

Question 52

A company that produces financial accounting software wants to offer better training to its customers.The training is intended to decrease the amount of time required to do complicated accounting calculations.For seven individuals,the amount of time (in minutes)to complete a complicated calculation is determined before and after completing the new training. Using the critical value approach and α = 0.05,the appropriate conclusion is _________________________________________________.

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

Question 53

A company that produces financial accounting software wants to offer better training to its customers.The training is intended to decrease the amount of time required to do complicated accounting calculations.For seven individuals,the amount of time (in minutes)to complete a complicated calculation is determined before and after completing the new training. The value of the test statistic is _____.

A) 5
B) 23
C) 7
D) 13

Question 54

A trading magazine wants to determine the number of hours stockbrokers work each week.In particular,the trading magazine wants to determine if the median numbers worked per week differs from 100 hours.The magazine samples 18 traders.For the Wilcoxon signed-rank test,the value of the test statistic is T = T⁺ = 153.Which of the following are the competing hypotheses to determine if the median number of hours worked per week differs from 100 hours?

A) H₀:m ≤ 100;H_A:m > 100
B) H₀:m ≥ 100;H_A:m < 100
C) H₀:m ≠ 100;H_A:m = 100
D) H₀:m = 100;H_A:m ≠ 100

Question 55

A company that produces financial accounting software wants to offer better training to its customers.The training is intended to decrease the amount of time required to do complicated accounting calculations.For seven individuals,the amount of time (in minutes)to complete a complicated calculation is determined before and after completing the new training. Using the p-value approach and α = 0.05,the appropriate conclusion is _________.

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

Question 56

A company that produces financial accounting software wants to offer better training to its customers.The training is intended to decrease the amount of time required to do complicated accounting calculations.For seven individuals,the amount of time (in minutes)to complete a complicated calculation is determined before and after completing the new training. At the 5% significance level,the critical value is ______.

A) 25
B) 3
C) 2
D) 26

Question 57

A trading magazine wants to determine the number of hours stockbrokers work each week.In particular,the trading magazine wants to determine if the median number of hours worked per week differs from 100 hours.The magazine samples 18 traders.For the Wilcoxon signed-rank test,the value of the test statistic is T = T⁺ = 153.The p-value for the test is _______.

A) 0.0016
B) 0.0032
C) 0.9984
D) 0

Question 58

A trading magazine wants to determine the number of hours stockbrokers work each week.In particular,the trading magazine wants to determine if the median number of hours worked per week differs from 100 hours.The magazine samples 18 traders.For the Wilcoxon signed-rank test,the value of the test statistic is T = T⁺ = 153.Using the p-value approach and α = 0.01,the appropriate conclusion is _____________________________________.

A) reject the null hypothesis;conclude the median number of hours worked per week differs from 100
B) reject the null hypothesis;we cannot conclude the median number of hours worked per week differs from 100
C) do not reject the null hypothesis;we conclude the median number of hours worked per week differs from 100
D) do not reject the null hypothesis;we cannot conclude the median number of hours worked per week differs from 100

Question 59

A pawn shop claims to sell used Kindles for about the same price as Amazon or eBay.Both online retailers sell used Kindles for around $150.Below are recent Kindle sales prices for the pawn shop. Using the critical value approach and α = 0.05,the appropriate conclusion is _______________________________________________.

A) to reject the null hypothesis;conclude the median sale price is greater than $150
B) do not reject the null hypothesis;we cannot conclude the median sale price is greater than $150
C) to reject the null hypothesis;we cannot conclude the median sale price is greater than $150
D) do not reject the null hypothesis;conclude the median sale price is greater than $150

Question 60

A trading magazine wants to determine the number of hours stockbrokers work each week.In particular,the trading magazine wants to determine if the median number of hours worked per week differs from 100 hours.The magazine samples 18 traders.For the Wilcoxon signed-rank test,the value of the test statistic is T = T⁺ = 153.If T is assumed to follow a normal distribution,the value of the test statistic is _____.

A) 153
B) 2.94
C) 0.128
D) −2.94

Question 61

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. To determine whether the median return of growth funds is larger than the median return of value funds,the competing hypotheses are ___________.

A) H₀: m₁ - m₂ ≥ 0;H_A: m₁ - m₂ < 0
B) H₀: m₁ - m₂ ≤ 0;H_A: m₁ - m₂ > 0
C) H₀: m₁ - m₂ ≠ 0;H_A: m₁ - m₂ = 0
D) H₀: m₁ - m₂ = 0;H_A: m₁ - m₂ ≠ 0

Question 62

SHY (NYSEARCA: SHY)is a 1−3 year Treasury bond fund that is considered to be a market-neutral position.Using the S&P 500 as a benchmark and five years of monthly log-return data,the rank correlation coefficient of SHY with the S&P 500 is found to be r_s = -0.284.Because the sample size is greater than 10,r_s can be assumed to follow a normal distribution with standard deviation __________.

A) 0
B) 0.129
C) 0.130
D) 1

Question 63

An accountant wants to know if the property taxes paid by clients who live in the city are different from those who live in the county.The property taxes paid by five clients from the city (sample 1)and five clients from the county (sample 2)are shown below. The value of the test statistic is _____.

A) 10
B) 21
C) 34
D) 55

Question 64

A shipping company believes there is a linear association between the weight of packages shipped and the cost.The following table shows the weight (in pounds)and cost (in dollars)of the last seven packages shipped. Using the critical value approach and α = 0.10,the appropriate conclusion is _________.

A) do not reject the null hypothesis;conclude weight and cost are correlated
B) do not reject the null hypothesis;we cannot conclude the correlation coefficient is different from zero
C) reject the null hypothesis;we cannot conclude the correlation coefficient is different from zero
D) reject the null hypothesis;conclude weight and cost are correlated

Question 65

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. Assuming that W follows a normal distribution,the value of the test statistic is _____.

A) 4.07
B) −4.07
C) −12.07
D) 12.07

Question 66

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. The p-value for the test is __________________.

A) greater than 0.10
B) between 0.10 and 0.05
C) between 0.05 and 0.01
D) less than 0.01

Question 67

An accountant wants to know if the property taxes paid by clients who live in the city are different from those who live in the county.The property taxes paid by five clients from the city (sample 1)and five clients from the county (sample 2)are shown below. At the 5% significance level,the critical values are ___________.

A) 18 and 37
B) 19 and 36
C) 18 and 36
D) 19 and 37

Question 68

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

Question 69

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 p-value approach and α = 0.10,the appropriate conclusion is _____.

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

Question 70

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. Because both sample sizes are at least 10,W can be assumed to follow a normal distribution with a mean and standard deviation of _____________,respectively.

A) 434.74 and 8100
B) 8100 and 434.74
C) 8100 and 189000
D) 189000 and 8100

Question 71

SHY (NYSEARCA: SHY)is a 1−3 year Treasury bond fund that is considered to be a market-neutral position.Using the S&P 500 as a benchmark and five years of monthly log-return data,the rank correlation coefficient of SHY with the S&P 500 is found to be r_s = -0.284.To determine if the SHY is not a market-neutral position,the competing hypothesis are __________.

A) H₀: ρ_s = 0;H_A: ρ_s ≠ 0
B) H₀: ρ_s ≤ 0;H_A: ρ_s > 0
C) H₀: ρ_s ≥ 0;H_A: ρ_s < 0
D) H₀: ρ_s ≠ 0;H_A: ρ_s = 0

Question 72

A marketing firm needs to replace its existing network provider and is considering three different providers.A primary consideration is the amount of system downtime.The following table contains the amount of network downtime (in hours)for the last five months for each network provider. For the Kruskal-Wallis test,the competing hypotheses are ___________.

A) H₀:m_A = m_B = m_C;H_A:Not all population medians are equal
B) H₀:m_A = m_B = m_C;H_A:m_A ≠ m_C
C) H₀:m_A = m_B = m_C;H_A:m_A ≠ m_B
D) H₀:m_A = m_B = m_C;H_A:m_B ≠ m_C

Question 73

A marketing firm needs to replace its existing network provider and is considering three different providers.A primary consideration is the amount of system downtime.The following table contains the amount of network downtime (in hours)for the last five months for each network provider. The test statistic value is ____.

A) 7.8
B) 13.0
C) 3.2
D) 12.02

Question 74

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. The value of the test statistic W is _____.

A) 215
B) 9870
C) 13350
D) 23200

Question 75

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

Question 76

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

Question 77

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. At the 1% significance level,the critical value is _____.

A) 1.645
B) 1.96
C) 2.33
D) 2.575

Question 78

An accountant wants to know if the property taxes paid by clients who live in the city are different from those who live in the county.The property taxes paid by five clients from the city (sample 1)and five clients from the county (sample 2)are shown below. To determine whether the medians of the taxes paid differ using the Wilcoxon rank-sum test,the competing hypotheses are ______________.

A) H₀: m₁ - m₂ ≥ 0;H_A: m₁ - m₂ < 0
B) H₀: m₁ - m₂ ≤ 0;H_A: m₁ - m₂ > 0
C) H₀: m₁ - m₂ ≠ 0;H_A: m₁ - m₂ = 0
D) H₀: m₁ - m₂ = 0;H_A: m₁ - m₂ ≠ 0

Question 79

An accountant wants to know if the property taxes paid by clients who live in the city are different from those who live in the county.The property taxes paid by five clients from the city (sample 1)and five clients from the county (sample 2)are shown below. Using the critical value approach and α = 0.05,the appropriate conclusion is ___________.

A) reject the null hypothesis;we cannot conclude the median taxes paid in the city differs from the median taxes paid in the county
B) do not reject the null hypothesis;conclude the median taxes paid in the city differs from the median taxes paid in the county
C) reject the null hypothesis;conclude the median taxes paid in the city differs from the median taxes paid in the county
D) do not reject the null hypothesis;we cannot conclude the median taxes paid in the city differs from the median taxes paid in the county

Question 80

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.The p-value for the test is ___________.

A) greater than 0.10
B) between 0.10 and 0.05
C) between 0.05 and 0.01
D) less than 0.01