Data on the one-year returns for a sample of financial sector equity funds are displayed below...

 

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Data on the one-year returns for a sample of financial sector equity funds are displayed below as percentages. We are interested in whether the typical return is positive. One-year returns (%): 4.02 0.78 2.51 -1.17 0.9 -3.31 4.63 2.17 -1.12 -0.72 -0.06 a. Explain whether a parametric or a nonparametric test is more appropriate in this case. Support your statement with a boxplot, an histogram and an individual value plot. [4 marks] 2.68 b. Perform a Wilcoxon test manually to see if the median return for all financial sector equity funds is indeed positive. Based your conclusion on the appropriate Wilcoxon critical value for a level of significance of 1%. [8 marks] C. d. Use the large-sample version of the Wilcoxon test to calculate a z-statistic for your result. What is the p-value? [4 marks] Perform the test using Minitab. Do the Minitab results support your earlier results in part (b)? Please note that MS Excel does not include a tool to perform this test. You will need to use Minitab to perform it. The data in Minitab and Excel are in the file Assign2Data (Tab Q3). [4 marks] Data on the one-year returns for a sample of financial sector equity funds are displayed below as percentages. We are interested in whether the typical return is positive. One-year returns (%): 4.02 0.78 2.51 -1.17 0.9 -3.31 4.63 2.17 -1.12 -0.72 -0.06 a. Explain whether a parametric or a nonparametric test is more appropriate in this case. Support your statement with a boxplot, an histogram and an individual value plot. [4 marks] 2.68 b. Perform a Wilcoxon test manually to see if the median return for all financial sector equity funds is indeed positive. Based your conclusion on the appropriate Wilcoxon critical value for a level of significance of 1%. [8 marks] C. d. Use the large-sample version of the Wilcoxon test to calculate a z-statistic for your result. What is the p-value? [4 marks] Perform the test using Minitab. Do the Minitab results support your earlier results in part (b)? Please note that MS Excel does not include a tool to perform this test. You will need to use Minitab to perform it. The data in Minitab and Excel are in the file Assign2Data (Tab Q3). [4 marks]

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a Since we do not know about the population distribution and we know onl... View the full answer