Suppose that a particular theory predicts that on Monday,Wednesday,and Friday the stock market will rise and that on Tuesday and Thursday the stock market will fall.If an economist tests this theory and finds that over a six- month period the theory predicts accurately,the economist would likely say that the theory
A)has been proven correct.
B)shouldn't be taken seriously.
C)is reliable.
D)is not rejected by the evidence.
E)is not useful because stock markets involve irrational human behaviour.

Question

Quizplus · Accepted Answer

The economist would likely say that the theory is not rejected by the evidence because the observed data over the six-month period aligns with the predictions made by the theory. However, this does not prove the theory correct, as further testing and evidence would be needed for such a conclusion.

Suppose That a Particular Theory Predicts That on Monday,Wednesday,and Friday