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 C) H₀: m₁ - m₂ ≠ 0;H_A: m₁ - m₂ = 0 D) H₀: m₁ - m₂ = 0;H_A: m₁ - m₂ ≠ 0

Question

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

Quizplus · Accepted Answer

The competing hypotheses for a one-tailed Wilcoxon rank-sum test (also known as Mann-Whitney U test) are: - Null Hypothesis (H0): The median return of growth funds is less than or equal to the median return of value funds. m(₁) - m(₂) ≤ 0 - Alternative Hypothesis (HA): The median return of growth funds is greater than the median return of value funds. m(₁) - m(₂) > 0 Therefore, the correct choice is B.

A Fund Manager Wants to Know If the Annual Rate