Question 1

The test statistic for the sign test is   where ________________________.

Accepted Answer

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)    
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 2

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

Accepted Answer

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

Question 3

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 rs = -0.284.Using the p-value approach and α = 0.01,the appropriate conclusion is______________.

Accepted Answer

A)  reject the null hypothesis;we cannot conclude the correlation coefficient is not zero 
B)  do not reject the null hypothesis;conclude the correlation coefficient is not zero 
C)  reject the null hypothesis;we conclude the correlation coefficient is not zero 
D)  do not reject the null hypothesis;we cannot conclude the correlation coefficient is not zero 
A)  reject the null hypothesis;we cannot conclude the correlation coefficient is not zero 
B)  do not reject the null hypothesis;conclude the correlation coefficient is not zero 
C)  reject the null hypothesis;we conclude the correlation coefficient is not zero 
D)  do not reject the null hypothesis;we cannot conclude the correlation coefficient is not zero

Question 4

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

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 5

A research analyst believes that a positive relationship exists between a firm's advertising expenditures and its sales.For 65 firms,she collects data on each firm's yearly advertising expenditures and its sales.She calculates a Spearman rank correlation coefficient of 0.45.The value of the test statistic and p-value are _________,respectively.

Accepted Answer

A)  3.60 and 0.0002 
B)  3.60 and 0.0004 
C)  3.63 and 0.0002 
D)  3.63 and 0.0004 
A)  3.60 and 0.0002 
B)  3.60 and 0.0004 
C)  3.63 and 0.0002 
D)  3.63 and 0.0004

Question 6

A magician has a coin that may or not be fair.The results of 30 flips of the coin are H H T H T H H T H H T H H T H T H H H T T T T T H H H H H T.At the 10% significance level,the critical value for the test is ____.

Accepted Answer

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

Question 7

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

Accepted Answer

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

Question 8

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 ________.

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 9

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

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 10

An airline claims that the median price of a round-trip ticket is less than $503.For a random sample of 400 tickets,the value of the Wilcoxon sign-ranks test is T = T+ = 37,230.
a.Specify the competing hypothesis to determine whether the median ticket price is less than $503.
b.Assume the normal approximation for the distribution of T,and calculate the value of the corresponding test statistic.
c.At the 10% significance level,what is the decision and conclusion?

Accepted Answer

The competing hypotheses for this left-t

Question 11

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.

Accepted Answer

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

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

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

Question 14

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 rs = -0.284.Because the sample size is greater than 10,rs can be assumed to follow a normal distribution with standard deviation __________.

Accepted Answer

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

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

A wine magazine wants to know if chefs can tell the difference between duck liver pâté and wet dog food.Eighteen chefs were asked to rate both the pâté and dog food on a scale from 1 to 5,with 1 corresponding to "inedible" and 5 to "very tasty." The results are shown in the following table.   Using the p-value approach and α = 0.05,the appropriate conclusion is ________.

Accepted Answer

A)  do not reject the null hypothesis;conclude chefs prefer pâté 
B)  reject the null hypothesis;conclude there is a difference in the preference between pâté and dog food 
C)  reject the null hypothesis;we cannot conclude there is a difference in the preference between pâté and dog food 
D)  do not reject the null hypothesis;conclude nothing 
A)  do not reject the null hypothesis;conclude chefs prefer pâté 
B)  reject the null hypothesis;conclude there is a difference in the preference between pâté and dog food 
C)  reject the null hypothesis;we cannot conclude there is a difference in the preference between pâté and dog food 
D)  do not reject the null hypothesis;conclude nothing

Question 17

A magician has a coin that may or may not be fair.The results of 30 flips of the coin are H H T H T H H T H H T H H T H T H H H T T T T T H H H H H T.Using the critical value approach,appropriate conclusion is ___________________________________________________________.

Accepted Answer

A)  do not reject the null hypothesis;we cannot conclude the coin is not fair 
B)  reject the null hypothesis;the coin is not fair 
C)  reject the null hypothesis;we cannot conclude the coin is not fair 
D)  do not reject the null hypothesis;the coin is not fair 
A)  do not reject the null hypothesis;we cannot conclude the coin is not fair 
B)  reject the null hypothesis;the coin is not fair 
C)  reject the null hypothesis;we cannot conclude the coin is not fair 
D)  do not reject the null hypothesis;the coin is not fair

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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 ___________.

Accepted Answer

A)  greater than 0.10 
B)  between 0.10 and 0.05 
C)  between 0.05 and 0.01 
D)  less than 0.01 
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 20

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

Accepted Answer

The answer of The method of runs above and below...

The test statistic for the sign test is where ________________________.

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

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

A magician has a coin that may or not be fair.The results of 30 flips of the coin are H H T H T H H T H H T H H T H T H H H T T T T T H H H H H T.At the 10% significance level,the critical value for the test is ____.

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

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 ________.

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

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

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

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

A magician has a coin that may or may not be fair.The results of 30 flips of the coin are H H T H T H H T H H T H H T H T H H H T T T T T H H H H H T.Using the critical value approach,appropriate conclusion is ___________________________________________________________.

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

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

Statistics and Data

Tabular and Graphical Methods

Numerical Descriptive Measures

Basic Probability Concepts

Discrete Probability Distributions

Continuous Probability Distributions

Sampling and Sampling Distributions

Interval Estimation

Hypothesis Testing

Statistical Inference Concerning Two Populations

Statistical Inference Concerning Variance

Chi-Square Tests

Analysis of Variance

Regression Analysis

Inference With Regression Models

Regression Models for Nonlinear Relationships

Regression Models With Dummy Variables

Time Series and Forecasting

Returns, Index Numbers and Inflation

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Exam 20: Nonparametric Tests

The test statistic for the sign test is where ________________________.

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

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

A magician has a coin that may or not be fair.The results of 30 flips of the coin are H H T H T H H T H H T H H T H T H H H T T T T T H H H H H T.At the 10% significance level,the critical value for the test is ____.

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

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 ________.

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

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

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

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

A magician has a coin that may or may not be fair.The results of 30 flips of the coin are H H T H T H H T H H T H H T H T H H H T T T T T H H H H H T.Using the critical value approach,appropriate conclusion is ___________________________________________________________.

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

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

Statistics and Data

Tabular and Graphical Methods

Numerical Descriptive Measures

Basic Probability Concepts

Discrete Probability Distributions

Continuous Probability Distributions

Sampling and Sampling Distributions

Interval Estimation

Hypothesis Testing

Statistical Inference Concerning Two Populations

Statistical Inference Concerning Variance

Chi-Square Tests

Analysis of Variance

Regression Analysis

Inference With Regression Models

Regression Models for Nonlinear Relationships

Regression Models With Dummy Variables

Time Series and Forecasting

Returns, Index Numbers and Inflation

Filters