"The consequences of prejudice against accepting the null hypothesis were examined through (a) a mathematical model intended to stimulate the research-publication process and (b) case studies of apparent erroneous rejections of the null hypothesis in published psychological research. The input parameters for the model characterize investigators' probabilities of selecting a problem for which the null hypothesis is true, of reporting, following up on, or abandoning research when data do or do not reject the null hypothesis, and they characterize editors' probabilities of publishing manuscripts concluding in favor of or against the null hypothesis." (Greenwald, A. G.) The example I'll use is the return on a particular stock. The variance of the return on investment gives the risk from that particular stock. Based on expected return and standard deviation of return the investment decisions are made. With the information we have, we can test whether the standard deviation of the return from a particular stock is greater than 5%. If it is more than 5 then no investment would be made in this else investment would be done. As is, this would be a right tailed test for which the set of hypothesis are given as:

H0: The average return is equal to 25, =25. This is that the standard deviation of return is equal to 5%

H1: The average return is higher than 25, >25. This is that the standard deviation of the return is greater than 5%.

If the null hypothesis is rejected, we do not invest in the given stock as the stock would be unwise to invest in a highly volatile stock.

Please discuss using reference to support