Suppose That a Particular Theory Predicts That on Monday, Wednesday

question 82

Multiple Choice

Suppose that a particular theory predicts that on Monday, Wednesday, and Friday the stock market will rise and that on Tuesday and Thursday the stock market will fall. If an economist tests this theory and finds that over a six- month period the theory predicts accurately, the economist would likely say that the theory

• A)has been proven correct.
• B)is not rejected by the evidence.
• C)is not useful because stock markets involve irrational human behaviour.
• D)is reliable.
• E)shouldn't be taken seriously.

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