The results of hypothesis tests are often misinterpreted in the popular press. For instance, explain how this

Question:

The results of hypothesis tests are often misinterpreted in the popular press. For instance, explain how this Business Week summary of a Data Resources Incorporated

(DRI) study of insider trading in the stock market is misleading:

DRI also compared the action of a sample of takeover stocks in the month before the announcement with the action of those same stocks in other, less significant one-month intervals. The conclusion: There was only 1 chance in 20 that the strength of the takeover stocks was a fluke. In short, the odds are overwhelming that inside information is what made these stocks move [34].

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Question Posted: