Deck 20: Nonparametric Tests

Question 1

For n_i ≥ 5,the test statistic,H,for the Kruskal-Wallis test is assumed to follow:

A)the standard normal distribution
B)the F distribution with k - 1 degrees of freedom in the numerator and denominator
C)the chi-square distribution with k - 1 degrees of freedom
D)the t distribution with k - 1 degrees of freedom

Answer 1

the chi-square distribution with k - 1 degrees of freedom

Question 2

Parametric tests typically assume the underlying population to be normally distributed.

Answer 2

True

Question 3

The nonparametric test for two population medians under independent sampling is known as:

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

Answer 3

Wilcoxon rank-sum test

Question 4

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

Question 5

The nonparametric test for ordinal data under matched-pairs sampling is:

A)Wilcoxon signed-rank test
B)Wald-Wolfowitz runs test
C)The sign test
D)Spearman's rank correlation test

Question 6

Nonparametric tests do not require a level of measurement as strong as is necessary for parametric tests.

Question 7

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

Question 8

The nonparametric test to determine if a sequence is random is:

A)Wilcoxon signed-rank test
B)Wald-Wolfowitz runs test
C)The sign test
D)Spearman's rank correlation test

Question 9

The test statistic for the sign test is ,where:

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 10

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

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

Question 11

The Wilcoxon rank-sum test is used as a nonparametric counterpart to the matched-pairs t test.

Question 12

The nonparametric test for the correlation between two variables is known as the:

A)Wilcoxon signed-rank test
B)Wilcoxon rank-sum test
C)Kruskal-Wallis test
D)Spearman's rank correlation test

Question 13

The null hypothesis of the Wald-Wolfowitz runs test is the elements do not occur randomly.

Question 14

Pearson's correlation coefficient is used as the nonparametric counterpart to the regular correlation coefficient formula.

Question 15

The Kruskal-Wallis test is the nonparametric alternative to one-way ANOVA.

Question 16

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

Question 17

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

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

Question 18

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

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

Question 19

Parametric tests are distribution-free tests.

Question 20

For the Wilcoxon rank-sum test with the sample sizes being at least 10,the test statistic can be assumed to follow a normal distribution with mean:

A)
B)
C)
D)

Question 21

Exhibit 20.1.A pawn shop claims to sell used Kindles for about the same price as Amazon or eBay.Both online retailers sell used Kindles for around $150.Below are recent Kindle sales prices for the pawn shop. Refer to Exhibit 20.1.Specify the competing hypotheses to determine if the median sale price is greater than $150.

A)
B)
C)
D)

Question 22

Exhibit 20.1.A pawn shop claims to sell used Kindles for about the same price as Amazon or eBay.Both online retailers sell used Kindles for around $150.Below are recent Kindle sales prices for the pawn shop. Refer to Exhibit 20.1.Using the critical value approach,the appropriate conclusion is:

A)Reject the null hypothesis;conclude the median sale price is greater than $150
B)Do not reject the null hypothesis,cannot conclude the median sale price is greater than $150
C)Reject the null hypothesis,cannot conclude the median sale price is greater than $150
D)Do not reject the null hypothesis,conclude the median sale price is greater than $150

Question 23

Exhibit 20.2.A trading magazine wants to determine the number of hours stock brokers work each week.In particular,the trading magazine wants to determine if the median numbers worked per week differs from 100 hours.The magazine samples 18 traders.For the Wilcoxon Signed-Rank Test,the value of the test statistic is . Refer to Exhibit 20.2.Since the sample size is at least 10,T can be assumed normally distributed with mean and standard deviation:

A)85.50,527.25
B)22.96,527.25
C)22.96,85.50
D)85.50,22.96

Question 24

Exhibit 20.3.A company which produces financial accounting software wants to offer better training to its customers.The training is intended to decrease the amount of time required to do complicated accounting calculations.For seven individuals,the amount of time (in minutes)to complete a complicated calculation is determined before and after completing the new training. Refer to Exhibit 20.3.The value of the test statistic is:

A)5
B)23
C)7
D)13

Question 25

Exhibit 20.1.A pawn shop claims to sell used Kindles for about the same price as Amazon or eBay.Both online retailers sell used Kindles for around $150.Below are recent Kindle sales prices for the pawn shop. Refer to Exhibit 20.1.Using the p-value approach and ,the appropriate conclusion is:

A)Reject the null hypothesis,cannot conclude the median sale price is greater than $150
B)Do not reject the null hypothesis,cannot conclude the median sale price is greater than $150
C)Do not reject the null hypothesis,conclude the median sale price is greater than $150
D)Reject the null hypothesis,conclude the median sale price is greater than $150

Question 26

Exhibit 20.3.A company which produces financial accounting software wants to offer better training to its customers.The training is intended to decrease the amount of time required to do complicated accounting calculations.For seven individuals,the amount of time (in minutes)to complete a complicated calculation is determined before and after completing the new training. Refer to Exhibit 20.3.Using the p-value approach and ,the appropriate conclusion is:

A)Do not reject the null hypothesis,cannot conclude the median difference of the times is greater than zero
B)Do not reject the null hypothesis,conclude the median difference of the times is greater than zero
C)Reject the null hypothesis,cannot conclude the median difference of the times is greater than zero
D)Reject the null hypothesis,conclude the median difference of the times is greater than zero

Question 27

Exhibit 20.3.A company which produces financial accounting software wants to offer better training to its customers.The training is intended to decrease the amount of time required to do complicated accounting calculations.For seven individuals,the amount of time (in minutes)to complete a complicated calculation is determined before and after completing the new training. Refer to Exhibit 20.3.The p-value for the test is:

A)Less than 0.01
B)Between 0.01 and 0.025
C)Between 0.025 and 0.05
D)Greater than 0.05

Question 28

Exhibit 20.3.A company which produces financial accounting software wants to offer better training to its customers.The training is intended to decrease the amount of time required to do complicated accounting calculations.For seven individuals,the amount of time (in minutes)to complete a complicated calculation is determined before and after completing the new training. Refer to Exhibit 20.3.At the 5% significance level,the critical value is:

A)25
B)3
C)2
D)26

Question 29

Exhibit 20.3.A company which produces financial accounting software wants to offer better training to its customers.The training is intended to decrease the amount of time required to do complicated accounting calculations.For seven individuals,the amount of time (in minutes)to complete a complicated calculation is determined before and after completing the new training. Refer to Exhibit 20.3.Using the critical value approach,appropriate conclusion is:

A)Reject the null hypothesis,cannot conclude the median difference of the times is greater than zero
B)Reject the null hypothesis,conclude the median difference of the times is greater than zero
C)Do not reject the null hypothesis,cannot conclude the median difference of the times is greater than zero
D)Do not reject the null hypothesis,conclude the median difference of the times is greater than zero

Question 30

Exhibit 20.2.A trading magazine wants to determine the number of hours stock brokers work each week.In particular,the trading magazine wants to determine if the median numbers worked per week differs from 100 hours.The magazine samples 18 traders.For the Wilcoxon Signed-Rank Test,the value of the test statistic is . Refer to Exhibit 20.2.At the 1% significance level,the right-tail critical value is:

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

Question 31

Exhibit 20.1.A pawn shop claims to sell used Kindles for about the same price as Amazon or eBay.Both online retailers sell used Kindles for around $150.Below are recent Kindle sales prices for the pawn shop. Refer to Exhibit 20.1.What is the value of the test statistic?

A)6
B)14
C)20
D)1

Question 32

Exhibit 20.2.A trading magazine wants to determine the number of hours stock brokers work each week.In particular,the trading magazine wants to determine if the median numbers worked per week differs from 100 hours.The magazine samples 18 traders.For the Wilcoxon Signed-Rank Test,the value of the test statistic is . Refer to Exhibit 20.2.Using the p-value approach and ,the appropriate conclusion is:

A)Reject the null hypothesis,conclude the median number of hours worked per week differs from 100
B)Reject the null hypothesis,cannot conclude the median number of hours worked per week differs from 100
C)Reject the null hypothesis,conclude the median number of hours worked per week is greater than 100
D)Reject the null hypothesis,cannot conclude the median number of hours worked per week is less 100

Question 33

Exhibit 20.1.A pawn shop claims to sell used Kindles for about the same price as Amazon or eBay.Both online retailers sell used Kindles for around $150.Below are recent Kindle sales prices for the pawn shop. Refer to Exhibit 20.1.At the 5% significance level,the critical value is:

A)2
B)19
C)0
D)28

Question 34

Exhibit 20.3.A company which produces financial accounting software wants to offer better training to its customers.The training is intended to decrease the amount of time required to do complicated accounting calculations.For seven individuals,the amount of time (in minutes)to complete a complicated calculation is determined before and after completing the new training. Refer to Exhibit 20.3.For the Wilcoxon signed-rank test,the competing hypotheses are:

A)
B)
C)
D)

Question 35

Exhibit 20.1.A pawn shop claims to sell used Kindles for about the same price as Amazon or eBay.Both online retailers sell used Kindles for around $150.Below are recent Kindle sales prices for the pawn shop. Refer to Exhibit 20.1.The p-value for the test is:

A)Less than 0.01
B)Between 0.025 and 0.01
C)Between 0.05 and 0.025
D)Greater than 0.05

Question 36

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.For the Wilcoxon signed-rank test,the competing hypotheses are:

A)
B)
C)
D)

Question 37

Exhibit 20.2.A trading magazine wants to determine the number of hours stock brokers work each week.In particular,the trading magazine wants to determine if the median numbers worked per week differs from 100 hours.The magazine samples 18 traders.For the Wilcoxon Signed-Rank Test,the value of the test statistic is . Refer to Exhibit 20.2.Specify the competing hypotheses in order to determine if the median number of hours worked per week differs from 100 hours.

A)
B)
C)
D)

Question 38

Exhibit 20.2.A trading magazine wants to determine the number of hours stock brokers work each week.In particular,the trading magazine wants to determine if the median numbers worked per week differs from 100 hours.The magazine samples 18 traders.For the Wilcoxon Signed-Rank Test,the value of the test statistic is . Refer to Exhibit 20.2.Using the critical value approach,the appropriate conclusion is:

A)Reject the null hypothesis,cannot conclude the median number of hours worked per week differs from 100
B)Reject the null hypothesis,conclude the median number of hours worked per week is greater than 100
C)Reject the null hypothesis,cannot conclude the median number of hours worked per week is less 100
D)Reject the null hypothesis,conclude the median number of hours worked per week differs from 100

Question 39

Exhibit 20.2.A trading magazine wants to determine the number of hours stock brokers work each week.In particular,the trading magazine wants to determine if the median numbers worked per week differs from 100 hours.The magazine samples 18 traders.For the Wilcoxon Signed-Rank Test,the value of the test statistic is . Refer to Exhibit 20.2.The p-value for the test is:

A)0.0016
B)0.0032
C)0.9984
D)0

Question 40

Exhibit 20.2.A trading magazine wants to determine the number of hours stock brokers work each week.In particular,the trading magazine wants to determine if the median numbers worked per week differs from 100 hours.The magazine samples 18 traders.For the Wilcoxon Signed-Rank Test,the value of the test statistic is . Refer to Exhibit 20.2.If T is assumed to follow a normal distribution,the value of the test statistic is:

A)153
B)2.94
C)0.128
D)-2.94

Question 41

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.The p-value for the test is:

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 42

Exhibit 20.6.A fund manager wants to know if the annual rate of return is greater for growth stocks (1)than value stocks (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. Refer to Exhibit 20.6.The value of W is:

A)215
B)9870
C)13350
D)23200

Question 43

Exhibit 20.5.An accountant wants to know if the property taxes paid by clients that live in the city are different from those that live in the county.The property taxes paid by five clients from the city (1)and five clients from the county (2)are shown below (in dollars). Refer to Exhibit 20.5.To determine if whether the medians of the taxes paid differ using the Wilcoxon rank-sum test,the competing hypotheses are:

A)
B)
C)
D)

Question 44

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 p-value approach and ,the appropriate conclusion is:

A)Reject the null hypothesis,conclude the median difference of the returns is greater than zero
B)Reject the null hypothesis,cannot conclude the median difference of the returns is greater than zero
C)Do no reject the null hypothesis,cannot 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 45

Exhibit 20.5.An accountant wants to know if the property taxes paid by clients that live in the city are different from those that live in the county.The property taxes paid by five clients from the city (1)and five clients from the county (2)are shown below (in dollars). Refer to Exhibit 20.5.At the 5% significance level,the critical values are:

A)18 and 37
B)19 and 36
C)18 and 36
D)19 and 37

Question 46

Exhibit 20.7.A marketing firm needs to replace its existing network provider,and is considering three different providers.A primary consideration is the amount of system down time.The following table contains the amount of network down-time (in hours)for the last five months for each network provider. Refer to Exhibit 20.7.The test statistic value is:

A)7.8
B)13.0
C)3.2
D)12.02

Question 47

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

A)0.062
B)-1.899
C)185
D)1.899

Question 48

Exhibit 20.5.An accountant wants to know if the property taxes paid by clients that live in the city are different from those that live in the county.The property taxes paid by five clients from the city (1)and five clients from the county (2)are shown below (in dollars). Refer to Exhibit 20.5.The value of the test statistic is:

A)10
B)21
C)34
D)55

Question 49

Exhibit 20.6.A fund manager wants to know if the annual rate of return is greater for growth stocks (1)than value stocks (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. Refer to Exhibit 20.6.Using the critical value approach,the appropriate conclusion is:

A)Reject the null hypothesis,conclude the median return of growth stock is greater than the median return of value stocks
B)Reject the null hypothesis,conclude the median return of value stock is greater than the median return of growth stocks
C)Reject the null hypothesis,conclude the median return of growth stock differs from the median return of value stocks
D)Reject the null hypothesis,cannot conclude the median return of growth stocks is greater than the median return of value stocks

Question 50

Exhibit 20.6.A fund manager wants to know if the annual rate of return is greater for growth stocks (1)than value stocks (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. Refer to Exhibit 20.6.The p-value for the test is:

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 51

Exhibit 20.6.A fund manager wants to know if the annual rate of return is greater for growth stocks (1)than value stocks (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. Refer to Exhibit 20.6.At the 1% significance level,the critical value is:

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

Question 52

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 53

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.At the 10% significance level,the critical value is:

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

Question 54

Exhibit 20.7.A marketing firm needs to replace its existing network provider,and is considering three different providers.A primary consideration is the amount of system down time.The following table contains the amount of network down-time (in hours)for the last five months for each network provider. Refer to Exhibit 20.7.For the Kruskal-Wallis test,the competing hypotheses are:

A)
B)
C)
D)

Question 55

Exhibit 20.6.A fund manager wants to know if the annual rate of return is greater for growth stocks (1)than value stocks (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. Refer to Exhibit 20.6.Since both sample sizes are at least 10,W can be assumed to follow a normal distribution with a mean and standard deviation of:

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

Question 56

Exhibit 20.6.A fund manager wants to know if the annual rate of return is greater for growth stocks (1)than value stocks (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. Refer to Exhibit 20.6.Assuming that W follows a normal distribution,the value of the test statistic is

A)4.07
B)-4.07
C)-12.07
D)12.07

Question 57

Exhibit 20.6.A fund manager wants to know if the annual rate of return is greater for growth stocks (1)than value stocks (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. Refer to Exhibit 20.6.Using the p-value approach and ,the appropriate conclusion is:

A)Reject the null hypothesis,conclude the median return of value stock is greater than the median return of growth stocks
B)Reject the null hypothesis,conclude the median return of growth stock differs from the median return of value stocks
C)Reject the null hypothesis,conclude the median return of growth stock is greater than the median return of value stocks
D)Reject the null hypothesis,cannot conclude the median return of growth stocks is greater than the median return of value stocks

Question 58

Exhibit 20.5.An accountant wants to know if the property taxes paid by clients that live in the city are different from those that live in the county.The property taxes paid by five clients from the city (1)and five clients from the county (2)are shown below (in dollars). Refer to Exhibit 20.5.Using the critical value approach,the appropriate conclusion is:

A)Reject the null hypothesis,cannot conclude the median taxes paid in the city differs from the median taxes paid in the county
B)Do not reject the null hypothesis,conclude the median taxes paid in the city differs from the median taxes paid in the county
C)Reject the null hypothesis,conclude the median taxes paid in the city differs from the median taxes paid in the county
D)Do not reject the null hypothesis,cannot conclude the median taxes paid in the city differs from the median taxes paid in the county

Question 59

Exhibit 20.6.A fund manager wants to know if the annual rate of return is greater for growth stocks (1)than value stocks (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. Refer to Exhibit 20.6.To determine whether the median return of growth funds is larger than the median return of value funds,the competing hypotheses are:

A)
B)
C)
D)

Question 60

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 Since the sample size is at least 10,T can be assumed to follow the normal distribution with mean and standard deviation:

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 61

Exhibit 20.9.A shipping company believes there is a linear association between the weight of packages shipped and the cost.The following table shows the weight (in pounds)and cost (in dollars)of the last 7 packages shipped. Refer to Exhibit 20.9.Using the critical value approach,the appropriate conclusion is:

A)Do not reject the null hypothesis,conclude weight and cost are correlated
B)Do not reject the null hypothesis,cannot conclude the is different from zero
C)Reject the null hypothesis,cannot conclude the correlation coefficient is different from zero
D)Reject the null hypothesis,conclude weight and cost are correlated

Question 62

Exhibit 20.8.A sports agent wants to understand the differences in the annual earnings of players in different sports.The below table shows the annual earnings (in million dollars)of 52 athletes.For the Kruskal-Wallis test,the rank sums for each group are at the bottom of the table. Refer to Exhibit 20.8.The test statistic value is:

A)18.29
B)21.0
C)23.3
D)40.6

Question 63

Exhibit 20.10.SHY (NYSEARCA: SHY)is a 1-3 year Treasury bond fund which 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 . Refer to Exhibit 20.10.To determine if the SHY is not a market neutral position,the competing hypothesis are:

A)
B)
C)
D)

Question 64

Exhibit 20.9.A shipping company believes there is a linear association between the weight of packages shipped and the cost.The following table shows the weight (in pounds)and cost (in dollars)of the last 7 packages shipped. Refer to Exhibit 20.9.To determine if the weights and costs are significantly correlated,the competing hypothesis is:

A)
B)
C)
D)

Question 65

Exhibit 20.8.A sports agent wants to understand the differences in the annual earnings of players in different sports.The below table shows the annual earnings (in million dollars)of 52 athletes.For the Kruskal-Wallis test,the rank sums for each group are at the bottom of the table. Refer to Exhibit 20.8.The p-value for the test is:

A)Greater than 0.10
B)Between 0.05 and 0.10
C)Between 0.01 and 0.05
D)Less than 0.01

Question 66

Exhibit 20.7.A marketing firm needs to replace its existing network provider,and is considering three different providers.A primary consideration is the amount of system down time.The following table contains the amount of network down-time (in hours)for the last five months for each network provider. Refer to Exhibit 20.7.At the 5% significance level,the critical value is

A)4.605
B)5.991
C)7.378
D)9.21

Question 67

Exhibit 20.11.A wine magazine wants to know if chefs can tell the difference between duck liver pate and wet dog food.Eighteen chefs were asked to rate both the pate 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. Refer to Exhibit 20.11.The estimate of the population proportion of plus signs is:

A)0.944
B)0.50
C)0.056
D)None of the above

Question 68

Exhibit 20.7.A marketing firm needs to replace its existing network provider,and is considering three different providers.A primary consideration is the amount of system down time.The following table contains the amount of network down-time (in hours)for the last five months for each network provider. Refer to Exhibit 20.7.The p-value for the test is:

A)Less than 0.01
B)Between 0.01 and 0.05
C)Between 0.05 and 0.10
D)Greater than 0.10

Question 69

Exhibit 20.11.A wine magazine wants to know if chefs can tell the difference between duck liver pate and wet dog food.Eighteen chefs were asked to rate both the pate 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. Refer to Exhibit 20.11.To determine if there are differences in preferences between pate and dog food using the sign test,the competing hypotheses are:

A)
B)
C)
D)

Question 70

Exhibit 20.10.SHY (NYSEARCA: SHY)is a 1-3 year Treasury bond fund which 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 . Refer to Exhibit 20.10.The p-value for the test is:

A)Less than 0.01
B)Between 0.01 and 0.05
C)Between 0.05 and 0.10
D)Greater than 0.10

Question 71

Exhibit 20.10.SHY (NYSEARCA: SHY)is a 1-3 year Treasury bond fund which 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 . Refer to Exhibit 20.10.Since the sample size is greater than 10 and can be assumed to follow a normal distribution,the value of the test statistic is

A)-2.20
B)-2.18
C)2.18
D)2.20

Question 72

Exhibit 20.8.A sports agent wants to understand the differences in the annual earnings of players in different sports.The below table shows the annual earnings (in million dollars)of 52 athletes.For the Kruskal-Wallis test,the rank sums for each group are at the bottom of the table. Refer to Exhibit 20.8.At the 1% significance level,the critical value is

A)11.345
B)9.348
C)7.815
D)6.251

Question 73

Exhibit 20.11.A wine magazine wants to know if chefs can tell the difference between duck liver pate and wet dog food.Eighteen chefs were asked to rate both the pate 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. Refer to Exhibit 20.11.Assuming has the standard normal distribution,the value of the test statistic for the sign test is:

A)3.767
B)-3.767
C)0
D)None of the above

Question 74

Exhibit 20.8.A sports agent wants to understand the differences in the annual earnings of players in different sports.The below table shows the annual earnings (in million dollars)of 52 athletes.For the Kruskal-Wallis test,the rank sums for each group are at the bottom of the table. Refer to Exhibit 20.8.For the Kruskal-Wallis test,the competing hypotheses are:

A) ,
B)
C) ,
D)

Question 75

Exhibit 20.8.A sports agent wants to understand the differences in the annual earnings of players in different sports.The below table shows the annual earnings (in million dollars)of 52 athletes.For the Kruskal-Wallis test,the rank sums for each group are at the bottom of the table. Refer to Exhibit 20.8.Using the p-value approach and ,the appropriate conclusion is:

A)Reject the null hypothesis,the annual salaries are not the same
B)Reject the null hypothesis,all median annual salaries are the same
C)Reject the null hypothesis,not all median annual salaries are the same
D)Reject the null hypothesis,cannot conclude all median annual salaries are not the same

Question 76

Exhibit 20.9.A shipping company believes there is a linear association between the weight of packages shipped and the cost.The following table shows the weight (in pounds)and cost (in dollars)of the last 7 packages shipped. Refer to Exhibit 20.9.At the 10% significance level,the positive critical value is:

A)0.893
B)0.786
C)0.714
D)0.881

Question 77

Exhibit 20.8.A sports agent wants to understand the differences in the annual earnings of players in different sports.The below table shows the annual earnings (in million dollars)of 52 athletes.For the Kruskal-Wallis test,the rank sums for each group are at the bottom of the table. Refer to Exhibit 20.8.Using the critical value approach,the appropriate conclusion is:

A)Reject the null hypothesis,the annual earnings are not the same
B)Reject the null hypothesis,not all median annual earnings are the same
C)Reject the null hypothesis,all median annual earnings are the same
D)Reject the null hypothesis,cannot conclude all median annual earnings are not the same

Question 78

Exhibit 20.9.A shipping company believes there is a linear association between the weight of packages shipped and the cost.The following table shows the weight (in pounds)and cost (in dollars)of the last 7 packages shipped. Refer to Exhibit 20.9.The Spearman rank correlation coefficient between weight and cost is:

A)0.960
B)0.811
C)0.820
D)0.897

Question 79

Exhibit 20.10.SHY (NYSEARCA: SHY)is a 1-3 year Treasury bond fund which 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 . Refer to Exhibit 20.10.Using the p-value approach and ,the appropriate conclusion is:

A)Reject the null hypothesis,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,conclude the correlation coefficient is not zero
D)Do not reject the null hypothesis,cannot conclude the correlation coefficient is not zero

Question 80

Exhibit 20.10.SHY (NYSEARCA: SHY)is a 1-3 year Treasury bond fund which 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 . Refer to Exhibit 20.10.Since the sample size is greater than 10, can be assumed to follow a normal distribution with standard deviation:

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