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

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Definitions:

Vickrey Auction

A sealed-bid auction where the highest bidder wins but pays the second-highest bid price.

Willingness To Pay

The maximum amount an individual is ready to spend for a good or service.

Revenue

The total amount of money earned by a business from its operations, including sales of goods and services, before any deductions are made.

Probability

A measure of the likelihood or chance of a specific event occurring, often expressed as a number between 0 and 1.