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)is not rejected by the evidence.
C)is not useful because stock markets involve irrational human behaviour.
D)is reliable.
E)shouldn't be taken seriously.

Question

Quizplus · Accepted Answer

The fact that the theory predicted accurately over a six-month period means that it is not rejected by the evidence. However, it is important to note that this does not necessarily prove the theory to be correct or reliable in the long term. Additionally, the statement about human behavior is irrelevant to the evaluation of the theory's accuracy.

Suppose That a Particular Theory Predicts That on Monday, Wednesday