Question

5Describe the precautions that the researcher should take while interpreting his findings.

Answer 1

Answer:-

The precautions that the research should take while interpreting his findings are:-

1) When the data is collected and analysis of the data is done the precautions should be taken that no errors are done which will lead to the wrong interpretation of data.

2) The researcher should not be complacent with the data that it is appropriate and adequate to draw inferences and must use statistical methods to verify the authenticity of data.

3) The researcher should also take into consideration the biases involved while gathering the data. The illustration is that the data collected may not be include the results of the less performing assets and the outcome consists of only superior performing assets leading to survivorship bias.

4) The researcher should always take note of the red flags in financial information which may be manipulated by the management like understating or overstating the expenses and bill and hold transactions in which the seller does not ships the goods but still recognizes the revenue.