The results of hypothesis tests are often misinterpreted in the popular press. For instance, explain how this
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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].
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Related Book For
Essential Statistics Regression And Econometrics
ISBN: 9780123822215
1st Edition
Authors: Gary Smith
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