To calculate beta requires making a what if assumption about

To calculate beta requires making a \"what if\" assumption about the true population parameter, where the \"what-if\" value is one that would cause the null hypothesis to be false.

Why is it either true or false?

Solution

true

because the null hypothesis is a statement that you want to test. In general, the null hypothesis is that things are the same as each other, or the same as a theoretical expectation. For example, if you measure the size of the feet of male and female chickens, the null hypothesis could be that the average foot size in male chickens is the same as the average foot size in female chickens. If you count the number of male and female chickens born to a set of hens, the null hypothesis could be that the ratio of males to females is equal to a theoretical expectation of a 1:1 ratio.