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.Using the critical value approach,appropriate conclusion is:
A)Reject the null hypothesis,cannot conclude the median difference of the returns is greater than zero
B)Do no reject the null hypothesis,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

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.Using the critical value approach,appropriate conclusion is:
A)Reject the null hypothesis,cannot conclude the median difference of the returns is greater than zero 
B)Do no reject the null hypothesis,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

Quizplus · Accepted Answer

The Answer of 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.Using the critical value approach,appropriate conclusion is:
A)Reject the null hypothesis,cannot conclude the median difference of the returns is greater than zero 
B)Do no reject the null hypothesis,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