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A Fund Manager Wants to Know If the Annual Rate

Question 7

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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. 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)  H<sub>0</sub>: m<sub>1</sub> - m<sub>2</sub> ≥ 0;H<sub>A</sub>: m<sub>1</sub> - m<sub>2</sub> < 0 B)  H<sub>0</sub>: m<sub>1</sub> - m<sub>2</sub> ≤ 0;H<sub>A</sub>: m<sub>1</sub> - m<sub>2</sub> > 0 C)  H<sub>0</sub>: m<sub>1</sub> - m<sub>2</sub> ≠ 0;H<sub>A</sub>: m<sub>1</sub> - m<sub>2</sub> = 0 D)  H<sub>0</sub>: m<sub>1</sub> - m<sub>2</sub> = 0;H<sub>A</sub>: m<sub>1</sub> - m<sub>2</sub> ≠ 0 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;HA: m1 - m2 < 0
B) H0: m1 - m2 ≤ 0;HA: m1 - m2 > 0
C) H0: m1 - m2 ≠ 0;HA: m1 - m2 = 0
D) H0: m1 - m2 = 0;HA: m1 - m2 ≠ 0

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