How Is a Theory Different from a Hypothesis

question 11

Multiple Choice

How is a theory different from a hypothesis?

• A)A hypothesis explains observations and cannot be refuted by new evidence.
• B)A theory is an explanation based upon controversial facts.
• C)A theory is an explanation that has been carefully examined and tested.
• D)A theory has been less thoroughly tested than a hypothesis.

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Definitions:

Random Variable

A variable whose values depend on outcomes of a probabilistic phenomenon, often used in statistics and probability theory.

Future Price

The predicted price of a commodity, security, or currency in a futures contract for delivery and payment at a specified future date.

General Motors

A multinational corporation based in the United States that designs, manufactures, markets, and distributes vehicles and vehicle parts.

Moral Hazard

A situation where one party in an agreement can take risks because the other party bears the consequences of those risks.