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

Quizplus · Accepted Answer

The mean of the test statistic T is n(n+1)/4, where n is the sample size. The standard deviation of T is sqrt(n(n+1)(2n+1)/24). For a sample size of 22, the mean of T is 126.5 and the standard deviation of T is 30.80.

Investment Institutions Usually Have Funds with Different Risk Versus Reward