Explanation:
The usual approach is to specify a null hypothesis that the researcher wishes to disprove.
(Book 2, Module 18.3, LO 18.f)
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Question 74
Two traders are discussing the hypothesis they wish to test with respect to the model represented by .
They wish to use the standard statistical methodology in their test. The first trader thinks an appropriate null hypothesis would be that with the goal of proving it to be true. The second trader thinks an appropriate null hypothesis to test is with the goal of rejecting it. With respect to these hypotheses:
A
the hypothesis of neither trader is appropriate.
B
the hypothesis of the first trader is appropriate but not that of the second trader.
C
the hypothesis of the second trader is appropriate but not that of the first trader.
D
more information is required before a hypothesis can be set up.
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