lect6_2010

# lect6_2010 - 1 / 16 Introduction to Econometrics Econ 322,...

This preview shows pages 1–6. Sign up to view the full content.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1 / 16 Introduction to Econometrics Econ 322, Fall, 2010 Lecture 6: Review of Statistical Concepts III September 22, 2010 Topics Covered triangleright Topics Covered One-Sided Hypothesis Tests Calculating the Test Statistic Calculating the p-value The Rejection region Confidence Intervals The confidence interval when σ 2 is unknown Testing for Differences in Means Estimators for Covariance and Correlation 2 / 16 1. one-sided tests 2. confidence intervals 3. Testing for differences in means 4. Correlation and Covariance One-Sided Hypothesis Tests Topics Covered triangleright One-Sided Hypothesis Tests Calculating the Test Statistic Calculating the p-value The Rejection region Confidence Intervals The confidence interval when σ 2 is unknown Testing for Differences in Means Estimators for Covariance and Correlation 3 / 16 square So far we have looked at two different ways of testing a statistical hypothesis when the alternative is a two-sided alternative. That is the test is H : μ = c vrs. H A : μ negationslash = c. square To test this hypothesis we 1. calculated the p-value of the test 2. set a fixed significance level, calculated the critical value and compared this to the test statistic. One-Sided Hypothesis Tests (cont) Topics Covered triangleright One-Sided Hypothesis Tests Calculating the Test Statistic Calculating the p-value The Rejection region Confidence Intervals The confidence interval when σ 2 is unknown Testing for Differences in Means Estimators for Covariance and Correlation 4 / 16 square Now consider the 1-sided test H : μ ≤ c vrs. H A : μ > c. or H : μ ≥ c vrs. H A : μ < c. square In order to work out the p-value of a test we need to think about the following: – how do we calculate the test statistic – when do we reject the test – how do we calculate the p-value square Consider the first type of 1-sided test. We believe that the value of μ is less than or equal to c . The alternative is that it is greater than c . Calculating the Test Statistic Topics Covered One-Sided Hypothesis Tests triangleright Calculating the Test Statistic Calculating the p-value The Rejection region Confidence Intervals The confidence interval when σ 2 is unknown Testing for Differences in Means Estimators for Covariance and Correlation 5 / 16 square The test statistic is generally: t = ˆ μ- μ H SE (ˆ μ ) where μ H is the value of μ if the Null hypothesis is true. square The problem here is that the null hypothesis doesn’t give me one value of μ under the null....
View Full Document

## This document was uploaded on 10/26/2011 for the course ECON 327 at Rutgers.

### Page1 / 16

lect6_2010 - 1 / 16 Introduction to Econometrics Econ 322,...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online