Reading 11: Hypothesis Testing - LOS a, (Part 2) ～ Q6 hypothesis, believes, Robert, return

mayanfang1

Q6. Robert Patterson, an options trader, believes that the return on options trading is higher on Mondays than on other days. In order to test his theory, he formulates a null hypothesis. Which of the following would be an appropriate null hypothesis? Returns on Mondays are:

A)   greater than returns on other days.

B)   less than returns on other days.

C)   not greater than returns on other days.

mayanfang1

答案和详解如下：

Q6. Robert Patterson, an options trader, believes that the return on options trading is higher on Mondays than on other days. In order to test his theory, he formulates a null hypothesis. Which of the following would be an appropriate null hypothesis? Returns on Mondays are:

A)   greater than returns on other days.

B)   less than returns on other days.

C)   not greater than returns on other days.

Correct answer is C)

An appropriate null hypothesis is one that the researcher wants to reject. If Patterson believes that the returns on Mondays are greater than on other days, he would like to reject the hypothesis that the opposite is true–that returns on Mondays are not greater than returns on other days.

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