1. Descriptive statistics ________. a: quickly describe large amounts of data b:

Question

1. Descriptive statistics ________.

a: quickly describe large amounts of data

b: help statisticians understand non-numeric information, like colors

c: can predict future stock returns with surprising accuracy

2.Why do financiers need hypothesis testing?

Data sets do not cover every instance of an event or measurement.

3. The result of any hypothesis test is ________.

a: So they can predict within a degree of certainty where stock prices will go in the future. b: Stock and bond pricing data is difficult to obtain and impossible to predict. c:

Data sets do not cover every instance of an event or measurement.

3. The result of any hypothesis test is ________.

a: we reject or fail to reject the alternative hypothesis b: we reject or fail to reject the null hypothesis c: we accept or fail to accept the alternative hypothesis

Explanation / Answer

1) The correct option is A

Descriptive statistics help us to simplify large amounts of data in a sensible way. Each descriptive statistic reduces lots of data into a simpler summary.

2) The correct option is C

Data sets do not cover every instance of an event or measurement.

Hypothesis testing does not help in taking Stock and bond market decisions as there is very less possibility to draw right conclusion on the basis of sample. The normal distribution does not contain sufficient information to take better decisions, that is where hypothesis testing comes into picture.one can take better decisions with the information available in hypothesis testing.

3)

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