Investment options and their ratings.
Saksham Goswami (021330124027)
ITM Skills University.
Introduction
Some popular investment options in India are Equity, Gold, Real Estate and finally debt. These different investment options are known for their different characteristics with each option leading in some or the other; For example, equity gives the investor the right to vote in the decisions made in a company while debt allows you to generate a fixed income at a predetermined interest rate.
Objective
To determine whether the investors are in a harmony while selecting investment options or their choices vary across the 4 investment opportunities.
Data Collection
To conduct this research the data was collected from 29 students with sound financial knowledge through a questionnaire based on Likert scale with ratings being scaled from 1-10, 1 being least preferable and 10 being highest favourable, also post data collection single factor Anova was calculated to analyse the differences in ratings between the mentioned investment options.
Data Analysis
| ANOVA | ||||||
| Source of Variation | SS | df | MS | F | P-value | F crit |
| Between Groups | 23.24137931 | 3 | 7.747126437 | 2.140046493 | 0.099165936 | 2.685643451 |
| Within Groups | 405.4482759 | 112 | 3.620073892 | |||
| Total | 428.6896552 | 115 |
- Null Hypothesis(H0) -: There is no significant difference in the average ratings between the investment options.
- Alternate Hypothesis(H1) -: There is a significant difference in the average of ratings between at least any 2 investments options.
As the P-value is 0.099 which is more than the significant level of 0.05 this indicates that we will accept the Null Hypothesis(H0) and reject the Alternate Hypothesis(H1).
Conclusion
As we accept the Null Hypothesis, we can say that there is no statistically significant difference in the average rating of 4 investment options.