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

Quizplus · Accepted Answer

The Wilcoxon signed-rank test uses a critical value table specific to the test, not the z-values provided in the options. However, at a 10% significance level, the critical value for a two-tailed test with a sample size of 22 is not directly related to the z-values given. The correct approach would involve consulting a Wilcoxon signed-rank test table for the critical value.

Investment Institutions Usually Have Funds with Different Risk Versus Reward