CFP Research & Evidence-Based Practice 2

Question 1

A CFP practitioner wants to evaluate the long-term effectiveness of a dollar-cost averaging strategy. Which research design is most appropriate?

Accepted Answer

Longitudinal study using historical market data

Answer

A longitudinal study using historical market data allows analysis of outcomes over time, which is essential for evaluating a time-based investment strategy.

Question 2

When a financial planner reads a study claiming 'p < 0.05,' what does this indicate about the findings?

Accepted Answer

There is less than a 5% probability the results occurred by chance under the null hypothesis

Answer

A p-value less than 0.05 means there is less than a 5% probability of obtaining the observed results if the null hypothesis were true.

Question 3

Which of the following best describes 'publication bias' in financial planning research?

Accepted Answer

Journals favoring studies with statistically significant or positive results

Answer

Publication bias occurs when journals are more likely to publish studies showing significant or positive results, skewing the available evidence base.

Question 4

A planner reviews two studies: one with n=30 and one with n=3,000. Holding all else equal, which finding is more reliable and why?

Accepted Answer

n=3,000, because larger samples reduce sampling error and increase statistical power

Answer

Larger samples reduce sampling error and increase statistical power, making the findings from n=3,000 more reliable when all else is equal.

Question 5

A CFP practitioner is applying evidence-based practice. Which source of evidence should be given the highest weight?

Accepted Answer

A systematic review of multiple high-quality randomized controlled trials

Answer

Systematic reviews synthesizing multiple high-quality RCTs sit at the top of the evidence hierarchy and provide the strongest basis for practice decisions.

CFP - Certified Financial Planner Practice Test

CFP - Certified Financial Planner Practice Test

CFP Research & Evidence-Based Practice 2