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 was 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 sum test
B) McNemar Test
C) Kruskal-Wallis rank test
D) One-way ANOVA F test

Question

Quizplus · Accepted Answer

Kruskal-Wallis rank test is a nonparametric method used to analyze the difference in means of three or more groups. It is suitable for comparing the mean rank of two or more independent samples, which is the case in this study where the three groups of entrepreneurs are independent of each other. The other options, Wilcoxon rank sum test, McNemar Test, and One-way ANOVA F test, are either not suitable for comparing more than two groups or assume parametric conditions that are not met in this study.

The Journal of Business Venturing Reported on the Activities of Entrepreneurs