Inter-Observer Risk-Tolerance Agreement between Husbands and Wives
Journal of Business and Economic Research Vol. 9, No. 2, February 2011
10 Pages Posted: 10 Aug 2012
Date Written: February , 2011
The purpose of this research was to test the extent to which variability in husbands’ and wives’ self-assessed financial risk can be attributed to variation in risk tolerance or observer bias resulting from measurement error. Using a sample of 188 well-educated married couples, scores from the Survey of Consumer Finances single risk-assessment item were used to evaluate the following null hypothesis: Husbands and wives do not agree on their level of financial risk tolerance. The hypothesis was tested using a percentage agreement test, a Kappa coefficient test, and a chi-square analysis. Findings led to a rejection of the null hypothesis. That is, couples exhibited general agreement in their assessment of financial risk tolerance, although the level of agreement was rather modest.
Keywords: Risk Tolerance, Gender, Marital Status, Kappa Test
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