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3 identifying which method will be used either
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2
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Kruskal-Wallis or Welch’s Anova. Based on
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0.5 figure 1, it shows that the standard deviation has
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0 5 an equal variability, thus, Kruskal-Wallis and
mean of transformed data
ANOVA is used in comparing the three (3) risk
Figure 1. Bartlett's test for associate in Wells Fargo.
homogeneity of variances
METHOD P-VALUE
ANOVA 0.999548
Kruskal-Wallis 0.047
On running the ANOVA and Kruskal-Wallis on the top three (3) risks of Wells
Fargo, the Operational, Credit and Market Risk, the following results in Table 1
were obtained. If the p-value is less than the significance level ɑ (alpha) = 0.05,
the null hypothesis (Ho) shows that there is a significant difference in the top three
ANOVA. The ANOVA test statistic p-value (p=0.999548) reveals that there is no
that Norton will not give special action or attention to the top three (3) identified
Based on the Kruskal-Wallis’ p-value (p=0.47), it is evident that the top three (3)
risks identified by Norton were significantly different with each other. Thus, Norton
has to give special attention or action to the three (3) risks – Operational, Credit
and Market.
action to the top three (3) identified risks specially to the Credit Risk because based
on the ANOVA variation results credit risk has the highest variation among the top
with credits. This should be considered by Wells Fargo. This risk could result Wells
Fargo’s financial loss and negative impression which could lead to certain negative
results in the future if credit risk were treated badly and can lead to bankruptcy.
Thus, Norton should make some plan of action in mitigating this risk by assessing