Lessons
- Lessons
Designing and reporting a hypothesis test
Connect the research question, null model, test direction and reported result.
- Lessons
Ordinary annuity and annuity-due timing
Place equal payments at the correct dates before applying the value factor.
- Lessons
Balance-sheet assets, liabilities and equity
Read the accounting equation and distinguish recognised balances from a complete business valuation.
- Lessons
Bond prices and yields: understanding the inverse relationship
Learn why a fixed-rate bond’s price changes when the market yield changes.
- Lessons
Cash conversion cycle and its flow bases
Match inventory, receivables and payables with the flows and period length used to calculate their days.
- Lessons
Reading a common-size balance sheet
Scale statement items by total assets while preserving accounting and measurement context.
- Lessons
Default probability and credit loss severity
Separate the likelihood of default from the loss conditional on default.
- Lessons
Discounting cash flows with consistent time periods
Match cash-flow timing, rate conventions and time-zero signs.
- Lessons
Reconciling DuPont analysis to return on equity
Use consistent period and average-balance inputs to reconstruct the direct return ratio.
- Lessons
Designing engagement objectives and escalation decisions
Build an objective, evidence trail and conditional next action for an issuer dialogue.
- Lessons
Economic order quantity and the ordering-holding trade-off
Inspect the deterministic cost objective before using the square-root order quantity.
- Lessons
Specifying an exclusion rule that can be checked
Define the activity, metric, threshold, data source and treatment of missing information.
- Lessons
Liquidity ratios and the quality of current assets
Compare defined numerators while retaining timing, collectability and financing context.
- Lessons
Checking probabilities and a complete scenario partition
Check individual bounds, overlaps and the sum across mutually exclusive exhaustive scenarios.
- Lessons
Checking a two-stage probability tree
Check each conditional split, path product and terminal probability.
- Lessons
Nominal and effective interest rates
Compare quoted annual rates only after identifying the compounding convention.
- Lessons
Screening constraints and the feasible portfolio set
Separate portfolio eligibility constraints from return estimates and realised performance.
- Lessons
Early-payment discounts and the additional credit period
Separate invoice timing, the discount amount and the cost of financing a discounted payment.
- Lessons
Choosing a common date for cash-flow values
Move differently dated cash flows to the same date before adding their values.
- Lessons
The central limit theorem and its conditions
Separate an asymptotic approximation from exact mean and variance identities.
- Lessons
One-stage and two-stage cluster sampling
Record group selection and within-group selection as separate stages.
- Lessons
Probability sampling design and estimation
Connect the selection mechanism with the estimator and its uncertainty.
- Lessons
Population, sampling frame and observation unit
Define who belongs to the study and what one observation represents.
- Lessons
Stratified sampling and population weights
Separate subgroup sample allocation from the shares used in the population estimate.