How to Interpret Analysis
Most research begins with the need to simply answer a question. Which stock is the best? Where should I invest my money next year? Next, form a hypothesis about the question, gather data, and test the hypothesis. All of this will lead to an answer that is usually referred to as "analysis." The challenge is interpreting the analysis.
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Instructions
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Review your source data. Test the validity and the reliability of the data with a sample. If you trust the source, you can skip this step.
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Find comparable data to benchmark the results. Analysis rarely means anything without being able to compare it against other results. That is, be sure the methodology or the formula for analysis is the same before comparing results.
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Develop an upper or lower threshold to establish a range. Understand where your analysis falls within this range. You can do this informally or formally, i.e, by creating percentiles.
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Answer the original question asked; that is, be sure the analysis stays focused and answers the question asked.
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Check for holes in the data. All outliers (data points which fall out of a certain range) must be carefully investigated and explained.
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Review all assumptions made. Research models generally have many assumptions. Be sure to understand how changing these assumptions affects the analysis.
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Do not overanalyze; avoid "analysis paralysis." Keep focused on the big picture. If the analysis isn't showing what you want it to show, do not force it.
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