Data Analysis of noise study Essay Example | Topics and Well Written Essays - 1250 words

Data Analysis of noise study - Essay Example Finally, this scale has an absolute or fixed zero point. An employee who scores a zero in test must have answered all the questions incorrectly. The ANOVA is used whenever there are three or more groups to compare. In this case it would be an appropriate tool because there are three groups to compare; Constant Sound, Random Sound and with No Sound. (There is no difference in the mean productivity of those who have background music at constant volume, those who have background music at periodically varying volumes and those who do not have background music at all) (There is a difference in the mean productivity of those who have background music at constant volume, those who have background music at periodically varying volumes and those who do not have background music at all.) The test results are statistically significant at the 5% level; that is, at the 5% significance level, the data do provide sufficient evidence to conclude that there is a difference in the mean productivity of employees who have background music at constant volume, those who have background music at periodically varying volumes and those who do not have background music at all. Once we have obtained the results from One-Way ANOVA, follow-up tests are required to find out which group’s mean significantly differs from the other group means. The test which we will be conducting is called Tukey HSD test. (i) Since 2.766 (ii) The second part shows that 3.631 > 3.57 therefore there is a significant differences in the mean productivity of the group which have background music at constant volume and the group which who had no background music. (iii) Finally, the results of the last part reveal that as 0.864 < 3.57 therefore there are no significant differences in the

Do you believe that equity fund managers with a good knowledge of Essay

Do you believe that equity fund managers with a good knowledge of behavioural finance can consistently outperform the market on a risk-adjusted basis Give reas - Essay Example y tries to point out that as the fund managers receive information they react spontaneously and update their briefs as soon as possible and also explains that given their briefs they make choices that are normatively acceptable1. Whereas, behavioural finance as mentioned is a new phenomenon which points out areas that are more towards reality because it tries to explain investors’ or the fund managers’ decisions by application of models and tools that takes into account the irrationality of the investors; thus here, it tries to talk about what happens when fund managers do not update their briefs as quickly and also do not stay in the acceptable norms. The proponents of behavioural finance argue that use of traditional pricing or valuing techniques such as capital asset pricing models, dividend discount models, relative valuation models etc. does not always explain why the excess returns have been earned at the end of the day by the investors in the light of the efficient markets, thus suggesting that if investors were rational then these techniques would rightly project the prices and no security would have been traded excepting at their fair values. Whereas, behavioural finance attempts to points out the anomalies in the fair values and the decisions that fund managers make in the market. The flawed or the irrational human behaviour is a victim to the phenomena like herd mentality, contagion effect, loss aversion, extrapolation, hindsight bias and illusions of control2. Here emotional factors and intuition to a large extent are the decisive factors in trading. Some of the most likely occurrences that can lead to fund managers deviate from making rational decisions in the market include importance of playing safe compared to earning high risk significant gains and also following the herd versus relying on self. Fund managers when offered a sure shot amount compared to something that is doubtful are more likely to accept the sure amount and forego any larger