Which Nonparametric Test Would We Use to Compare Ratings Assigned

question 20

Multiple Choice

Which nonparametric test would we use to compare ratings assigned to n pairs of bonds by two different rating agencies, if the bonds are rated on an ordinal scale (Aaa, Aa, A, Baa, Ba B, etc.) ?

• A)Wald-Wolfowitz one-sample runs test
• B)Wilcoxon signed-rank test
• C)Wilcoxon rank sum (Mann-Whitney) test
• D)Kruskal-Wallis test

---

Definitions:

Public Company

A rephrased descriptor for a business entity that issues shares of stock available to the public through stock exchanges or over-the-counter markets.

Legal Restrictions

Laws, regulations, or policies that limit or regulate certain behaviors, actions, or practices within a jurisdiction or under specific circumstances.

Initial Public Offering

The first time that the stock of a private company is offered to the public for purchase, typically to raise capital for expansion or operations.

Private Company

A business entity owned by non-governmental organizations or a relatively small number of shareholders or company members, which does not offer or trade its company stock to the general public.