Research & Evidence-Based Practice Flashcards

A CFP practitioner reads two contradictory studies on sequence-of-returns risk. One is a practitioner journal article; the other is a peer-reviewed academic study. Which should generally be weighted more heavily?

Answer: The peer-reviewed academic study because it underwent independent scientific review

Peer-reviewed academic studies undergo independent expert evaluation of methods and findings, making them a higher-quality evidence source than practitioner journals that may not have the same review rigor.

A planner notices that whenever stock markets decline, client calls about switching to cash increase. The planner avoids recommending cash based on this pattern. This informal observation is best described as:

Answer: Anecdotal evidence with limited generalizability

Informal personal observations are anecdotal evidence, which sits at the bottom of the evidence hierarchy and cannot be generalized reliably.

Which of the following best defines 'effect size' in financial planning research?

Answer: The practical magnitude of a difference or relationship between variables

Effect size quantifies the practical magnitude of a relationship or difference, independent of sample size, helping determine whether a statistically significant result is also practically meaningful.

A financial planner implements a behavioral coaching intervention and measures clients' savings rates before and after. No control group is used. The biggest threat to concluding the intervention caused improved savings is:

Answer: History and maturation threats to internal validity

Without a control group, external events (history) or natural changes over time (maturation) could explain the improvement, threatening internal validity.

A researcher conducting a survey on estate planning intentions sends questionnaires to 1,000 clients; only 120 respond. The primary concern is:

Answer: Non-response bias, as non-responders may differ systematically from responders

A low response rate creates non-response bias risk because those who did not respond may have systematically different attitudes or behaviors from those who did.

Which of the following describes the appropriate use of 'practice-based evidence' in financial planning?

Answer: Systematically gathering and analyzing client outcome data from one's own practice to inform decisions

Practice-based evidence involves systematically collecting and analyzing outcomes from one's own clients to complement and inform evidence-based practice.

A CFP practitioner finds a study showing that fee-only advisors generate better client outcomes than commission-based advisors. Before applying this finding, the planner should consider which of the following?

Answer: Whether the study was funded by a fee-only advisor association, which could indicate potential conflict of interest

Funding source is a key component of critical appraisal because studies funded by parties with a financial interest in the outcome may have conflicts of interest that bias findings.