A Fund Manager Wants to Know If the Annual Rate

Multiple Choice

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. To determine whether the median return of growth funds is larger than the median return of value funds, the competing hypotheses are ________.

A) H₀: m₁ - m₂ ≥ 0; H_A: m₁ - m₂ < 0
B) H₀: m₁ - m₂ ≤ 0; H_A: m₁ - m₂ > 0
C) H₀: m₁ - m₂ ≠ 0; H_A: m₁ - m₂ = 0
D) H₀: m₁ - m₂ = 0; H_A: m₁ - m₂ ≠ 0