Technical Paper 3: Hypothesis Testing in Finance
We discussed financial hypothesis testing and learned how this economic process is a
tool for confirming a financial or business claim or idea. Hypothesis testing is useful for
investors trying to decide what to invest in and whether the instrument is likely to
provide a satisfactory return.
Direction:
1. Select one of the following financial organization to do market research on:
-
Private (ex. Publix, Johnson & Johnson)
b. Public Govt./Non-Profit (ex. Miami Dade County)
c. Entrepreneurship (ex. Your own business) - Come up with a hypothesis how your organization can provide “added value”
services. Questions to ask -
What is the question I want to answer about your organization?
b. What is your business case?
c. Is there a need? How do you know—data?
d. Are you using sampling—market survey, market studies, market
experiments - After you come up with a financial hypothesis, you need to collect a sample of
data to be analyzed. Use the Barry Library link below to find information.
Depending on the question you’re seeking to answer or investigating, you might
collect samples through -
Market Surveys
b. Market observational studies, or
c. Market experiments