1177 words 5 pagesIn terms of basic research and applied research how would you categorize Sam’s study?
Sam’s studies used applied research , as Sam is solving specific problems in particular situations.
Purposiveness, testability, and objectivity are three hallmarks of scientific research. Use
Sam’s study as an example to discuss these hallmarks.
Purposiveness : Scientific research must have a definite aim or purpose focus . Here Sam’s succeeded to develop a purpose for the research : “What is the effect of personality and emotional reactivity on the financial performance of day traders.”
Testability: Scientific research should test logically developed hypotheses to see whether or not the data supports the hypothesis that are developed after …show more content…
Explain the steps in hypothetico-deductive research using Sam’s study as an example.
1) Identify a broad problem area :
To investigate the role of personality and emotions on trading performance.
2) Define the problem statement
A problem statement should be developed that states the general objectives of the research . This is done through gathering initial information about the factors that are possibly related to the problem and will help to narrow the broad problem area and define the problem statements
Sam Gathered initial information about factors that are possibly related to the problem. He has interviewed several traders of the Pacific Futures Trading Company and gathered books and research articles on behavioral economics and finance.to understand what is going down in the field of behavioral finance. This has allowed him to develop the following problem statement: “What is the effect of personality and emotional reactivity on the financial performance of day traders.”
3) Develop hypotheses
Variables are examined to their degree of contribution or influence in explaining why the problem occurs and how it can be solved . Scientific hypothesis must meet two