1. Why do financiers need hypothesis testing?
a) Data sets do not cover every instance of an event or measurement.
b) Stock and bond pricing data is difficult to obtain and impossible to predict.
c) So they can predict within a degree of certainty where stock prices will go in the future.
d) The normal distribution does not give them enough information to make sound decisions.
2. What method would you use to gather a data set on voter preferences?
a) Distributing
b) Hypothesizing
c) Engineering
d) Sampling
3. The null hypothesis represents ________.
a) the old idea that you wish to disprove
b) no idea at all, a placeholder
c) the new idea that you wish to prove
d) a third idea that is completely neutral
4. The alternative hypothesis represents ________.
a) a third idea that is completely neutral
b) the old idea that you wish to disprove
c) no idea at all, a placeholder
d) the new idea that you wish to prove
5. The result of any hypothesis test is ________.
a) we accept or fail to accept the null hypothesis
b) we reject or fail to reject the alternative hypothesis
c) we reject or fail to reject the null hypothesis
d) we accept or fail to accept the alternative hypothesis