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An online financial firm provides its users with information on the past earnings of various stocks, but also predictions on future earnings for the same
An online financial firm provides its users with information on the past earnings of various stocks, but also predictions on future earnings for the same stocks made by all the users of the firm's website. The users can then use this information to decide which stocks to buy and sell. In November 2015, this financial firm decided to perform an experiment to demonstrate that its system improves the users' ability to outperform the stock market. The experiment went as follows. After November 30, 2015, half of the users of the website were presented: Group A: with both past stock performance and other users' predictions. Group B: with only past stock performance. The company then measured the percentage of the users outperforming the stock market in each of the two groups. The results of this experiment are presented below. The vertical dotted line represents the beginning of the experiment. % users outperforming the market m group ..B 50 Nov 01 Nov 15 Dec 01 Dec 15 Jan 01 Using what you have learned in class, describe, interpret and explain the results of these experiments. Based on your analysis, what would you recommend the firm to do in the future? An online financial firm provides its users with information on the past earnings of various stocks, but also predictions on future earnings for the same stocks made by all the users of the firm's website. The users can then use this information to decide which stocks to buy and sell. In November 2015, this financial firm decided to perform an experiment to demonstrate that its system improves the users' ability to outperform the stock market. The experiment went as follows. After November 30, 2015, half of the users of the website were presented: Group A: with both past stock performance and other users' predictions. Group B: with only past stock performance. The company then measured the percentage of the users outperforming the stock market in each of the two groups. The results of this experiment are presented below. The vertical dotted line represents the beginning of the experiment. % users outperforming the market m group ..B 50 Nov 01 Nov 15 Dec 01 Dec 15 Jan 01 Using what you have learned in class, describe, interpret and explain the results of these experiments. Based on your analysis, what would you recommend the firm to do in the future
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