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) not greater than returns on other days. B) greater than returns on other days. C) less than returns on other days. D) not less than returns on other days.
so alt hyp is what he surmises. So Alt: Return is higher on Mondays So Null: Return is not greater on Mondays So choice C.
I’d say A, cause A includes equality.
A is correct. However I don’t understand how it includes equality. My answer was C
The null hypothesis ALWAYS includes equality, C says “less”, which is "
not greater than MEANS THE SAME AS less than or equal to Ouch.!!!
< vs <= C does not account if the returns are equal is what I’m thinking
oh yeah I understand now. That was a tricky question. Thanks guys!