Some things to consider for your discussion for the client in CW2I know that some of you are starting your CW2 so here is some general ideas to think about whenyou get to the point of writing discussion around your tables, charts, hypotheses tests, etc.1.Think about your client as an investor, they may have many strategies, don’t assumeanything and don’t tell them what their investment approach should be. An investor mightwant to pick winners, like an Angel Investor, who puts all their money into one company andwants to work closely with the company. An investor might want to spread their moneywidely by buying shares in companies across the whole industry.An investor might want topick just a few companies at random.An investor might be looking for riskier investments orsafer investments, you don’t know what they want. Don’t assume anything.2.When you use a variable, make sure you tell the client how it is measured and why it mightinterest them.For example, clearly both profit margin and shareholder return are measuresof potential gains or losses for the investor so they should consider these carefully and that iswhy they have asked you to look at them. But tell them how these are measured by lookingat the notes on the data set.3.When you are looking at the distribution of any variable, you will be using descriptivestatistics and a histogram. So here are some things to consider when looking at anydescriptive stats tables for profit margin.a.When you are looking at the sample ‘mean’ value of profit margin you need to saywhy it might interest the client.Profit margin is clearly a measure of performance.Whether the value is high or low, depends on what it is compared with, leaving yourmoney in the bank? Investing in another sector? You also need to say somethingabout the data as a sample from the population. If the client invested in only yoursample companies in this sector, they might expect something like the sample meanreturn, but what if they pick other companies in the sector, or just a few at random,or want to spread their investment across the population of firms in the sector?b.The population mean for profit margin represents the average return an investormight expect if they spread their investment across all firms the sector.Use theconfidence interval estimate for this.Explain the limitations of making decisionsbased only on the sample data you have got and why the client needs to think aboutthe pattern in the population of data from the whole sector, which is not available.
