Accuracy is one of the criteria to evaluate secondary data. While using this criterion,
a. researchers need not worry about what is actually measured.
b. the researcher must evaluate the overall procedure for collecting the data.
c. researchers must keep in mind that the data were collected to answer a different set of research questions than the ones at hand.
d. The data must be carefully evaluated on how it relates to the current research objective.
e. the researcher must determine the underlying motivation or hidden agenda, if any.
Answer: c. researchers must keep in mind that the data were collected to answer a different set of research questions than the ones at hand.
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When estimating a capital budget, it is common to separate cash flows into: 1) the initial investment, 2) incremental cash flows over the life of the project, and 3) a terminal value
Indicate whether the statement is true or false.
Which of the following is a difference between audits and compilations?
A) The auditor's objective is to obtain reasonable assurance that the financial statements are free of material misstatements, whereas the objective of a compilation is to assist management in presenting financial information without obtaining any level of assurance. B) Audits do not require an understanding of the entity's internal controls and an assessment of fraud risk, whereas compilations require an understanding of the entity's internal controls and an assessment of fraud risk. C) Audits have a narrower scope as compared to reviews, whereas compilations have a broader scope as compared to reviews. D) Audits provide a reasonable level of assurance to the users of the financial statements, whereas compilations provide a limited level of assurance to the users of the financial statements.