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Gujarati – Econometria Básica
The decision to accept or reject H0 is made on the basis of the value of the test statistic obtained from the data at hand. The t table is given in Appendix D. Basic Econometrics, Fourth Edition I.
Once again let us revert to our consumption—income example.
If we let H0: In practice, there is no need to estimate 5. One can com- pute the t value in the middle of the double inequality given by 5. But we can make the probabilistic state- ment given in 5.
The conclusion remains the same; namely, we reject H0. Of course, we can always use ecojometria t table to determine whether a particular t value is large or small; the answer, as we know, depends on the degrees of freedom as well as on the probability of Type I error that we are willing to accept.
If you take a look at the t table given in Appendix D, you will observe that for any given value of df the probability of obtaining an increasingly large t value becomes progressively smaller. Thus, for 20 df the probability fconometria obtain- ing a t value of 1. Since we use the t distribution, the preceding testing procedure is called appropriately the t test.
ECONOMETRIA BASICA GUJARATI EBOOK DOWNLOAD
In this case the null hypothesis is rejected. In this situation, the null hypothesis is not rejected.
But this happens because our H1 was a Gujarati: But suppose prior experience suggests to us that the MPC is expected to be greater than 0. In this case we have: Although H1 is still a composite hypothesis, it econonetria now one-sided. To test this hypothesis, we use the one-tail test the right tailas shown in Figure 5. See also the discussion in Section 5.
But more on this in Section.