Chapter 3 · Section 3 practice

Research Design and Multiple Testing

0 of 5 answered

These questions review the examples in the companion slides. Choose an answer, then check the explanation.

Question 1

You revise a model repeatedly after reading its OOS results. How should that period now be described?

  • Untouched confirmation
  • Development evidence
  • A randomised experiment
  • An independent replication

Question 2

Which tested hypotheses belong in a multiple-testing family?

  • All candidates in the declared search, including discarded attempts
  • Only the final winner
  • Only profitable candidates
  • Only candidates with p below 0.05

Question 3

Two strategies share evaluation dates. What is the natural comparison?

  • Treat every stock as a new independent experiment
  • Compare only their best years
  • Analyse the paired net-return difference with time dependence
  • Ignore fees for both

Question 4

Does Benjamini–Hochberg adjustment repair leaked future features?

  • Yes, always
  • Yes, if there are 200 tests
  • Yes, if the adjusted p is small
  • No; valid inputs and tests are prerequisites

Question 5

A valid test reports p = 0.03. Which interpretation is correct?

  • The null has a 3% probability of being true
  • Under the null and assumptions, outcomes at least as extreme have probability 3%
  • The effect has magnitude 3%
  • There is a 97% probability of a profitable trade