Research and statistical methods for finance


Question 1:

a) Explain why a critical analysis of the given is significant while reading a research article:

• The author.
• The date of publication.

b) What do you understand by the reliability and validity of a measuring procedure?

c)  List and describe in brief five examples of scientific misconduct.

d) Write down the major differences between the qualitative and quantitative research.

Question 2: A normal distribution is thought to have a mean of 50. A random sample of 100 gave a mean of 52.6 and a standard deviation of 14.5. A significance test was carried out at the 5% level to validate an increase in the population mean.

By letting the population mean to be µ and population variance to be σ2

a) Formulate the hypothesis for the problem.

b) Compute a 95% confidence interval for µ.

By using the standard test statistic the null hypothesis is discarded at the 5% level of confidence.

c) Describe what is meant here, paying particular attention to the level of the significance?

d) What would be your conclusion at the 10% level of importance?

Question 3:

a) Go through the research paper provided.

  • Identify and write down the research problem.
  • What is(are) the main objective(s) of the research?
  • Write down the major findings of the research.
  • Recognize all the components of the last reference (that is, made to D Wilks) in the paper. Why a specific reference to the page number is missing here?

b) What is the main purpose of the abstract, introduction and the methodology part in the research report?

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