Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For the following experiment, identify how control, randomization, and replication were used. An investment club decided to compare investment strategies. Starting with nine equal investment

image text in transcribed
image text in transcribed
For the following experiment, identify how control, randomization, and replication were used. An investment club decided to compare investment strategies. Starting with nine equal investment amounts, three invested in underperfonning stocks. The relative amounts to invest in each of the stocks were chosen randomly and differently for each fund. Three funds invested following the advice of a TV investment show host, again choosing the specic stocks and allocations randomly for the three funds. And three funds invested by throwing darts at the page of the newspaper that lists stocks, and invested in each of the stocks hit by a dart, throwing a different set of darts for each of the three funds. At the end of six months, the funds were compared. How was control used? C.) A. The strategies were developed by the same club. 4;: B. The strategies were tested at the same time. {.3 C. The darts strategy was completely random. How was randomization used? The members of the investment club who ran the experiment were chosen at random. The strategy selection was randomized to obtain three different strategies. Darts were used to randomly select stocks for one fund. The allocation of funds to stocks was randomized to obtain three portfolios of each strategy. How was replication used? 4:3 A. Three different strategies were tested. 4;: B. Three portfolios were tested for each strategy. Q C. Each portfolio was tested in the same market conditions. {.3 D. Nine total portfolios were tested

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Calculus

Authors: Jon Rogawski, Colin Adams, Robert Franzosa

4th Edition

1319055842, 9781319055844

More Books

Students also viewed these Mathematics questions

Question

The probability it leaves is 0.3 each second.

Answered: 1 week ago

Question

Always show respect for the other person or persons.

Answered: 1 week ago

Question

Self-awareness is linked to the businesss results.

Answered: 1 week ago