Suppose a particular theory predicts that on Monday,Wednesday,and Friday the stock market will rise and that on Tuesday and Thursday the stock market will fall.If an economist tests this theory and finds that over a six-month period the theory predicts accurately,the economist would likely say that the theory
A)has been proven correct.
B)is reliable.
C)is not in conflict with the evidence.
D)shouldn't be taken seriously.
E)is not useful because stock markets involve irrational human behaviour.

Question

Quizplus · Accepted Answer

The economist would likely say that the theory "is not in conflict with the evidence" because the theory's predictions matched the actual outcomes over the tested period. This does not prove the theory correct beyond doubt (as future evidence might contradict it), but it does indicate that the theory's predictions were consistent with observed events during the test period.

Suppose a Particular Theory Predicts That on Monday,Wednesday,and Friday the Stock