Question: (LO 6-4, LO 6-5) Based on Exhibit 6.10 and the descriptive analytics reporting the return on market equity (the research work of Burgstahler and Dichev
(LO 6-4, LO 6-5) Based on Exhibit 6.10 and the descriptive analytics reporting the return on market equity (the research work of Burgstahler and Dichev referenced in the chapter), what additional type of analytics could you do to understand why this distribution is different from a normal, bell-shaped distribution? Would it be more descriptive analytics or diagnostic, predictive, or prescriptive analytics? Which observations would you look at directly? What would you evaluate?
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