NISM Certifications · NISM-Series-XV: Research Analyst · Fundamentals of Research
Which of the following is the best example of primary data in a research analyst's work on a consumer goods company?
Notes from the analyst's own interviews with distributors are primary data because the analyst collects them first-hand for the research purpose. Annual reports, trade association statistics and other brokers' reports already exist and were compiled by others, so they are secondary data.
- AAnnual report of the company downloaded from the stock exchange website
- BIndustry statistics published by a trade association
- CNotes from the analyst's own interview with the company's distributorsCorrect
- DA brokerage report written by another analyst on the same company
Explanation
Primary data is collected first-hand by the analyst for the specific purpose, such as interviews or channel checks. Annual reports, trade association statistics and other analysts' reports are all existing sources, hence secondary data.
Did you get it right without looking?
One question tells you little. A timed set on Fundamentals of Research shows your real accuracy, how long you take and where you lose marks.
More Fundamentals of Research questions
- A research analyst finds that a company's reported profit rose 30% but wants to know whether this was driven by operations or one-off items.…
- An analyst's sales forecast for a company is Rs 2,000 crore in the base case. Under an optimistic scenario she assumes 10% higher sales, and…
- In research methodology, which approach to research starts from observed specific data and moves towards forming a general conclusion or the…
- Which type of research data is a company's annual report, as used by a research analyst studying the company's performance?
- Which statement about sensitivity analysis in a research model is correct?
- An analyst collects the following sample of 5 monthly returns (%) of a stock: 2, 4, 6, 8, 10. What is the sample standard deviation (using n…