AuthorTopic: Data mining
@2008-11-12 12:25:24
Sunil Hameed is a reporter with the weekly periodical The Fun Finance Times. Today, he is scheduled to interview a researcher who claims to have developed a successful technical trading strategy based on trading on the CEO?s birthday (sample was taken from the Fortune 500). After the interview, Hameed summarizes his notes (partial transcript as follows). The researcher:

?? was defensive about the lack of economic theory consistent with his results.
?? used the same database of data for all his tests and has not tested the trading rule on out-of-sample data.
?? excluded stocks for which he could not determine the CEO?s birthday.
?? used a sample cut-off date of the month before the latest market correction.

Select the choice that best completes the following: Hameed concludes that the research is flawed because the data and process are biased by:
A) data mining, time-period bias, and look-ahead bias.
B) time-period bias and survivorship bias.
C) data mining, sample selection bias, and time-period bias.
D) sample selection bias and time-period bias.
@2009-01-03 18:08:57
i think it is A

CFA Discussion Topic: Data mining

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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt