RAA Research Methods & Evidence-Based Practice 2 — Questions and Answers
Question 1: Which statistical measure describes how spread out data points are around the mean in annuity performance studies?
- Standard deviation (Correct answer)
- Median
- Mode
- Arithmetic mean
Correct answer: Standard deviation
Standard deviation measures the dispersion of data points around the mean, indicating variability in annuity returns.
Question 2: An advisor reviews a study showing that variable annuity holders who rebalance annually outperform those who do not. What type of study design is most likely used?
- Longitudinal cohort study (Correct answer)
- Cross-sectional survey
- Case study
- Expert opinion panel
Correct answer: Longitudinal cohort study
A longitudinal cohort study follows the same group over time, making it ideal for comparing outcomes between rebalancers and non-rebalancers.
Question 3: In evidence-based practice, what does 'peer review' primarily ensure about published research?
- Independent expert evaluation of methodology and findings (Correct answer)
- Government approval of financial claims
- Client testimonials are included
- Studies are published in popular media
Correct answer: Independent expert evaluation of methodology and findings
Peer review subjects research to independent expert scrutiny, increasing confidence in the validity of the methodology and conclusions.
Question 4: A researcher finds that states with higher annuity sales also have higher retirement savings rates. Without further analysis, this is best described as:
- Correlation, not causation (Correct answer)
- A controlled experiment
- A definitive causal relationship
- A meta-analysis finding
Correct answer: Correlation, not causation
Observing that two variables move together only establishes correlation; establishing causation requires controlling for confounding variables.
Question 5: When evaluating annuity product suitability research, which source hierarchy level is generally considered the highest quality evidence?
- Systematic review or meta-analysis (Correct answer)
- Single randomized controlled trial
- Observational study
- Expert opinion
Correct answer: Systematic review or meta-analysis
Systematic reviews and meta-analyses synthesize findings from multiple studies, providing the highest level of evidence in the evidence hierarchy.
Question 6: An annuity advisor wants to apply evidence-based practice. Which action best reflects this approach?
- Integrating peer-reviewed research with client values and professional expertise (Correct answer)
- Relying solely on product manufacturer data
- Using only personal client testimonials
- Following the most recent industry advertisement
Correct answer: Integrating peer-reviewed research with client values and professional expertise
Evidence-based practice integrates high-quality research evidence with professional judgment and individual client circumstances.
Question 7: A 'null hypothesis' in annuity research typically states that:
- There is no significant difference or effect between compared groups (Correct answer)
- The new annuity product is superior
- Clients prefer fixed over variable annuities
- All annuities outperform inflation
Correct answer: There is no significant difference or effect between compared groups
The null hypothesis assumes no significant effect or difference exists, and researchers attempt to reject it with sufficient evidence.
RAA Research Methods & Evidence-Based Practice 2
Which statistical measure describes how spread out data points are around the mean in annuity performance studies?