Andrea Is Told That the Means of Two Groups in a Study

question 56

Multiple Choice

Andrea is told that the means of two groups in a study were statistically significant. She knows the means and standard deviations of the two groups and is interested in calculating an estimate of effect size. Given this information, which effect size estimate should she calculate?

• A)F
• B)Effect size r
• C)Cohen's d
• D)Alpha

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Definitions:

Average Returns

The arithmetic mean of the historical returns of an investment, often used as a general indication of its past performance.

Hedge Funds

are investment funds that employ a variety of strategies to earn active return, or alpha, for their investors, often involving higher risks and aiming for higher returns than traditional investments.

Survivorship Bias

The logical error of focusing on instances that survived a selection process and overlooking those that did not because of their lack of visibility.

Backfill Bias

A bias that can occur when historical performances of investment portfolios are artificially inflated because only successful funds are reported or included in analyses.