5 The p Value P value of the test P value is the level of significance

5 the p value p value of the test p value is the

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0 . Principles of Econometrics, 4t h Edition Page 35 Chapter 3: Interval Estimation and Hypothesis Testing
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3.5 The p -Value If t is the calculated value of the t -statistic, then: if H : β > c if 1 : K > p = probability to the right of t if H 1 : β K < c b bilit t th l ft f p = probability to the left of t if H 1 : β K c p = sum of probabilities to the right of | t| d h l f f | | Principles of Econometrics, 4t h Edition Page 36 Chapter 3: Interval Estimation and Hypothesis Testing and to the left of – | t|
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3.5 The p -Value From Section 3 4 2 we have 3.5.2 p-Value for a Left-tail Test From Section 3.4.2, we have The null hypothesis is H 0 : β 2 15 The alternative hypothesis is H : β < 15 The alternative hypothesis is 1 : 2 2 15 10.21 15 2.29 se 2 09 b t b   The p -value is 2 2.09 0139 . 0 29 . 2 38 t P p Principles of Econometrics, 4t h Edition Page 37 Chapter 3: Interval Estimation and Hypothesis Testing
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Figure 3.6 The p -value for a left-tail test. 3.5 The p -Value 3.5.2 p-Value for a Left-tail Test Principles of Econometrics, 4t h Edition Page 38 Chapter 3: Interval Estimation and Hypothesis Testing
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3.5 The p -Value From Section 3 4 3a we have 3.5.3 p-Value for a Two-tail Test From Section 3.4.3a, we have The null hypothesis is H 0 : β 2 = 7.5 The alternative hypothesis is H : β ≠ 7 5 The alternative hypothesis is 1 : β 2 7.5 2 7.5 10.21 7.5 1.29 se 2 09 b t b The p -value is 2 2.09 2033 . 0 29 . 1 29 . 1 38 38 t P t P p Principles of Econometrics, 4t h Edition Page 39 Chapter 3: Interval Estimation and Hypothesis Testing
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3.4 Examples of Hypothesis Tests 3.4.3b Two-tail Test of Significance From typical Eviews output, we can easily find the calculated p values calculated The p-value routinely reported by Eviews H 0 : β =0; H 1 : β≠ 0 Test for statistical significance for individual coef ficients The p-values for one-tailed alternative are 0.5 of these p-values Principles of Econometrics, 4t h Edition Page 40 Chapter 3: Interval Estimation and Hypothesis Testing
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