To test the likelihood that a series of price movements occurred by chance you can use a
A) chance test.
B) Fisher-Weil test.
C) runs test.
D) Chi-square test.

Question

Quizplus · Accepted Answer

The runs test is used to analyze a sequence of data points to determine if they are randomly distributed. It's particularly useful for analyzing price movements in financial markets to test the hypothesis that the sequence of price changes is random. The other options do not specifically relate to testing the randomness of a series of events like price movements.

To Test the Likelihood That a Series of Price Movements