This lesson will help you understand the significance of hypothesis testing. Brushing up on these concepts now will help you tackle your finance coursework later. Be sure to complete the Concept Check at the end of the lesson to cement your skills and receive credit Why do financiers need hypothesis testing? Data sets do not cover every instance of an event or measurement. So they can predict within a degree of certainty where stock prices will go in the future. Stock and bond pricing data is difficult to obtain and impossible to predict. The normal distribution does not give them enough information to make sound decisions What method would you use to gather a data set on voter preferences? Sampling Distributing Engineering The null hypothesis represents ___. the old ideal that you wish to the new ideal that you wish to prove a third ideal that is completely The alternative hypothesis represents ____. the old idea that you wish to a third idea that in no place holder the