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FIVE (20 Marks) On the basis of the information provided below, answer the questions that follow. The recent collapse of major banks in the United
FIVE (20 Marks) On the basis of the information provided below, answer the questions that follow. The recent collapse of major banks in the United States and Europe, including Silicon Valley Bank, Signature Bank and Credit Suisse, have raised questions about the health of the banking sector globally (Cabral, 2023). A major global investor, KXD Investment, with substantial investment in the South African baking sector wants to investigate the structural sustainability of the seven major South African commercial banks Standard Bank of South Africa, First National Bank, ABSA Bank, Nedbank, Capitec Bank, African Bank, and Discovery Bank. The main objectives of the investigation are: (1) to determine the distress levels of the seven banks, and (2) to undertake a pairwise comparison of the financial resilience of the seven banks. You are a researcher at KXD Investment, and you have been asked to lead the investigation. You intend using Altmans failure prediction model to compute the z-scores of the seven banks for each quarter of the 2018 2022 period. The statistical analysis of the data will be undertaken using IBM SPSS statistics version 25. Required: 5.1 Based on the objectives prescribed for the investigation, formulate TWO (2) research questions underpinning the investigation. (2 marks) 5.2 For each of the two research questions formulated above, specify the independent variable (IV) and the dependent variable (DV). (4 marks) 5.3 For each of the two research questions formulated above, specify the scales at which the independent and dependent variables would be measured. (4 marks) 5.4 Formulate a set of null and alternative hypotheses for each of the research questions. (4 marks) 5.5 Specify, with reasons, the parametric statistical test, and the equivalent non-parametric test that you would run to test the hypotheses formulated in 5.4, above. (6 marks)
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