Hi --
Can someone explain the differences between A and C?
Robert Patterson, an options trader, believes that the return on options trading is higher on Mondays than on other days. In order to test his theory, he formulates a null hypothesis. Which of the following would be an appropriate null hypothesis? Returns on Mondays are:
A)
less than returns on other days.
B)
greater than returns on other days.
C)
not greater than returns on other days.
Explanation
An appropriate null hypothesis is one that the researcher wants to reject. If Patterson believes that the returns on Mondays are greater than on other days, he would like to reject the hypothesis that the opposite is true–that returns on Mondays are not greater than returns on other days.
(Study Session 3, Module 11.1, LOS 11.b)
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