Read the Classical Ball & Brown (1968) paper and answer the questions.

Q1) Paper Comprehension: A. What were the main Findings & Results in the research. (10 points)

B. What were the main dependent & independent variables? (10 points)

C. Discuss the the theories used to develop the paper's hypotheses. (10 points)

Q3) What are the limitations of an analytical approach to "usefulness of accounting practices". (20 points)

Q4) A. The authors address the fact that the results are systematically biased against findings in favor of accounting reports, based on the paper this is due to? (10 points)

B. What other biases could be impacting the evidence and findings? (10 points)

Q5) Ball & Brown use "the forecast error" as a proxy for new information contained in income numbers. Based on the mathematical equation associated with this error term explain how and why it captures news information. (30 points)