The Journal of Business Venturing Reported on the Activities of Entrepreneurs

question 166

Multiple Choice

The Journal of Business Venturing reported on the activities of entrepreneurs during the organization creation process. As part of a designed study, a total of 71 entrepreneurs were interviewed and divided into 3 groups: those that were successful in founding a new firm (n₁ = 34) , those still actively trying to establish a firm (n₂ = 21) , and those who tried to start a new firm but eventually gave up (n₃ = 16) . The total number of activities undertaken (e.g., developed a business plan, sought funding, looked for facilities) by each group over a specified time period during organization creation was measured. The objective is to compare the mean number of activities of the 3 groups of entrepreneurs. Because of concerns over necessary assumption of the parametric analysis, it was decided to use a nonparametric analysis. Identify the nonparametric method that would be used to analyze the data..

• A) Wilcoxon Rank Sums Test
• B) McNemar Test
• C) Kruskal-Wallis Rank Test
• D) One-way ANOVA F test

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Definitions:

Standard Deviation

A statistical measure that quantifies the variability or dispersion of a set of data points or returns of an investment.

Annual Returns

The percentage change in the value of an investment over a one-year period.

Risk Premium

The extra return expected by an investor for holding a risky asset, compared to a risk-free asset.

Corporate Bonds

Debt securities issued by corporations to finance their operations, expansion, or other spending needs, paying fixed or variable interest rates to investors.