Schweser Mock2 Morning Session Q4

As far as the question goes, nothing in the question suggests whether she is going to use part of this data for the research recommendation or going to issue a recommendation solely based on the research so far. Explanation suggets that she has violated the standard for “due dilligence”. I am not sure If I am misssing to understand something in this question. Could anyone of you please clarify?

After talking with May, Garvey starts a research project on Zenith Enterprises , a frozen-juice maker. Garvey gathers quarterly data on the copany’s sales and profits over the past two years. Garvey uses a simple linear regression to estimate the relationship between GDP growth and Zenith’s sales growth. Next she uses a consensus GDP estimate from a well-known economic data reporting service and her regression model to extrapolate groth for the next three years.

In her estimation of Zenith’s future growth rate, what standard did Garvey violate?

a) Standard I© Misrepresentation regarding plagiarism

b) Standard V(A) Diligence and Reasonable Basis

c) Both I© and V(A).

I think that it is implicit that Garvey will be using her estimated growth rate in issuing a research recommendation. I don’t think you need to be worried about the possibility that perhaps she’s doing research, but will ultimately change her mind and abandon the project, which would mean she didn’t violate any standards since she didn’t actually issue a recommendation, unless such a possibility is specified in the vignette.