Exhibit 20.4.Investment institutions usually have funds with different risk vs.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 . Refer to Exhibit 20.4.Assuming that T follows a normal distribution,the value of the test statistic is

Question

Exhibit 20.4.Investment institutions usually have funds with different risk vs.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  . Refer to Exhibit 20.4.Assuming that T follows a normal distribution,the value of the test statistic is

Quizplus · Accepted Answer

The Wilcoxon signed-rank test is a non-parametric test used to compare two related samples. The test statistic is calculated by summing the ranks of the differences between the two groups, with positive differences assigned positive ranks and negative differences assigned negative ranks.

In this case, the test statistic is given as 11eaa4ae_7a3a_f411_9180_87908f00abfb_TB2339_11, which suggests the use of a normal approximation to the distribution of the test statistic. To obtain the z-score associated with this test statistic, we can use the standard normal distribution table or software.

Using software or a calculator, the z-score associated with this test statistic is approximately 1.899. Therefore, the answer is D: 1.899.