Which of the Following Statements About the Null Hypothesis Is

question 208

Multiple Choice

Which of the following statements about the null hypothesis is false?

• A) It is the first of two opposing hypotheses in any hypothesis test.
• B) It is a description of the status quo.
• C) It is a vehicle for making startling new claims that contradict the conventional wisdom.
• D) Ifis corroborated in a hypothesis test, no action need be taken by anyone.
• E) It is the first of two opposing hypotheses in any hypothesis test and it is a description of the status quo.

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Definitions:

Real Return

The return on an investment after adjusting for inflation, reflecting the actual purchasing power gained or lost.

Inflation

The speed at which the overall price level for goods and services increases, leading to a decrease in buying power.

Corporate Bond

A debt security issued by corporations to raise capital, with the promise to pay back the principal along with interest.

Ownership Right

The legal entitlement to use, control, or dispose of property, assets, or resources as the owner sees fit.