Our null hypothesis is that the true coefficient is zero. In which case would we choose to use a one-sided alternative hypothesis over a two-sided alternative hypothesis? We choose a one sided alternative hypothesis when we have a large sample size. We choose a one sided alternative hypothesis when we specify a low (0.01) significance level. It does not matter what type of alternative hypothesis we specify. Choose a one sided alternative hypothesis when the theory and literature suggests either that the true coefficient should be greater than zero or that the true coefficient should be less than zero.

Our null hypothesis is that the true coefficient is zero. In which case would we choose to use a one-sided alternative hypothesis over a two-sided alternative hypothesis? We choose a one sided alternative hypothesis when we have a large sample size. We choose a one sided alternative hypothesis when we specify a low (0.01) significance level. It does not matter what type of alternative hypothesis we specify. Choose a one sided alternative hypothesis when the theory and literature suggests either that the true coefficient should be greater than zero or that the true coefficient should be less than zero.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter2: Mathematics For Microeconomics

Section: Chapter Questions

Problem 2.14P

See similar textbooks

Similar questions

Kennedy Agyapong presents a case to Ghanaians about false religious leaders in Ghana, if he includes quantitative analysis to his submissions and the property of the quantitative analysis is appropriate to his presentation, but a simple is of no demonstrable bearing on his conclusion but he adds that, where it is only somehow germane to his conclusion, what fallacy can Mr. Agyapong be criticized for ? for question two and three: a. Tell whether the statement is a verifiable or confirmable statement; b. Is the statement general or particular ? In one sentence ground your response. 2. All the humans available experienced Philosophy 3. Some face mask from country X is infected with Covid-19 of SARS-Cov-2 4. Anytime each of the condition are all present, the effect will occur, and not otherwise. Such set of casual conditions is technically termed as what ? 5. Assuming you know the circumstances surrounding the death of the late president of Ghana's (Professor John Evans Fiifi Atta…
3)Suppose we are testing a null hypothesis against a two-sided alternative, then the alternative can be written as: A. E(Y) > μY,0 B. E(Y) = μY,0 C. ≠ μY,0 D. E(Y) ≠ μY,0
A) State whether the following statement(s) are true/false with justification i) If the model is linear in parameters, but there is non-linear relation between dependent and independent variables, OLS cannot be used. ii) OLS can be applied to estimate a multiple linear regression model, and each slope coefficient shows the full effect of an individual variable on the dependent variable iii) Both slope and intercept will change if dependent and independent variables are divided by factor k (=1000). B) In a left-tailed test where you reject Ho only in the lower tail, what is the p-value if Z = (-) 1.00?
1. Why is the existence of a correlation (existence of co-occurrence or association) between and Fnot enough evidencefor us to say that Ycauses Y?2. What is the post hoc, ergo propter hoc fallacy? Give an example
what are the general steps in testing statistical hypothesis
6 In a test of hypothesis, the symbol α represents: a The level of significance, or the probability of rejecting a true H₀. b The power of the test, or the probability of rejecting a false H₀. c The level of significance, or the probability of not rejecting a false H₀. d The level of significance, or the probability of committing a Type II error.
Assume that driving skill, S, varies throughout the population. Automobile insurers classify drivers into two categories: “Good” and “Bad”. Good drivers are those people who have driving skills above a threshold level of driving skill, S*. Bad drivers, on the other hand, have driving skills that fall below the threshold level, S*. Good drivers pay lower rates than Bad drivers. Additionally, assume that it’s common knowledge that Welsh are more skillful drivers than Scots, such that a higher proportion of the Welsh population has driving skills above S* than the Scottish population. Also assume that there is a law that prohibits insurers from learning a person’s driving skill. Suppose that drivers can decide to use a new device that will send credible real time driving data to their insurance company (e.g., speed, stopping distance, driving times, etc.) that allows insurers to correctly classify a driver as having skill greater than or less than S*. Which group would be most likely to…
Assume that driving skill, S, varies throughout the population. Automobile insurers classify drivers into two categories: “Good” and “Bad”. Good drivers are those people who have driving skills above a threshold level of driving skill, S*. Bad drivers, on the other hand, have driving skills that fall below the threshold level, S*. Good drivers pay lower rates than Bad drivers. Additionally, assume that it’s common knowledge that Welsh are more skillful drivers than Scots, such that a higher proportion of the Welsh population has driving skills above S* than the Scottish population. Also assume that there is a law that prohibits insurers from learning a person’s driving skill. Suppose that drivers can decide to use a new device that will send credible real time driving data to their insurance company (e.g., speed, stopping distance, driving times, etc.) that allows insurers to correctly classify a driver as having skill greater than or less than S*. Who is most likely to employ these…
Type I and Type II Errors. Please discuss Type I and Type II errors. What are they? Discuss their relationship with hypothesis testing.
Suppose now that instead of herders buying the UThere phones, herders in the region were randomly given either a new UThere phone or soap of equivalent value. The impact evaluation team then randomly surveyed 250 herders who receive the phone and 250 who received the soap. When you directly compare average income for these two groups, the difference gives you: Naïve ATE due to selection bias, since those who randomly got phones are different from those who got soap. True ATE due to the randomization which implies that those who got soap are otherwise comparable to those who got phones. different way of measuring selection bias due to the randomization, since getting soap might increase the average income but not as much as UThere phones. the same value of Naïve ATE that you might expect to get without a random distribution of phones and soap.
When defining the hypothesis, we present… a. None of the responses b. The null hypothesis only c. The alternative hypothesis only d. The null and alternative hypotheses
7 Which of the following statements about Type I and Type II errors is correct: a Type I: Do not reject a false null hypothesis. Type II: Reject a true null hypothesis. b Type I: Reject a false null hypothesis. Type II: Reject a true null hypothesis. c Type I: Reject a true null hypothesis. Type II: Do not reject a false null hypothesis. d Type I: Reject a true alternative hypothesis. Type II: Do not reject a false alternative.