Billy developed an economic model to describe the behavior of a stock market index.His model predicts that the index increases on Mondays and declines on the other days of the week.What can be said about Billy's model?
A) The model's predictions are ambiguous and cannot be tested.
B) The model's predictions are not ambiguous and cannot be tested.
C) The model's predictions are ambiguous and can be tested.
D) The model's predictions are not ambiguous and can be tested.

Question

Quizplus · Accepted Answer

Billy's model makes clear and testable predictions about the behavior of the stock market index. It predicts that the index increases on Mondays and declines on other days of the week. Thus, the model's predictions are not ambiguous and can be tested.

Billy Developed an Economic Model to Describe the Behavior of a Stock