Question

In: Economics

The p-value method for hypothesis testing relies on the fact that if the null hypothesis is...

The p-value method for hypothesis testing relies on the fact that

if the null hypothesis is false, then it is very unlikely to observe a p-value smaller than the chosen significance level.

if the null hypothesis is true, then it is very unlikely to observe a p-value larger than the chosen significance level.

if the null hypothesis is true, then it is very unlikely to observe a p-value smaller than the chosen significance level.

if the alternative hypothesis is true, then it is very unlikely to observe a p-value smaller than the chosen significance level.

The coefficient of determination ( R2) is

the ratio of the unexplained variation in y to the total variation in y.

the ratio of the explained variation in y to the total variation in y.

the ratio of the explained variation in y to the unexplained variation in y.

the ratio of the unexplained variation in y to the explained variation in y.

A marginal effect indicates

the predicted value of the dependent variable, holding all else constant.

the effect that a one-unit change in the independent variable is expected to have on the dependent variable, holding all else constant.

the effect that a one-unit change in the dependent variable is expected to have on the independent variable, holding all else constant.

the predicted value of the dependent variable when the independent variable equals 0, holding all else constant.

Solutions

Expert Solution

The null hypothesis is false - This implies p-value < level of significance

The null hypothesis is true - This implies p-value > level of significance

Hence, the correct answer is:

If the null hypothesis is true, then it is very unlikely to observe a p-value smaller than the chosen significance level

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The coefficient of determination ( R2) is the ratio of the explained variation in y to the total variation in y

Hence, the correct answer is the ratio of the explained variation in y to the total variation in y

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A marginal effect indicates the effect that a one-unit change in the independent variable is expected to have on the dependent variable, holding all else constant.

Hence, the correct answer is - the effect that a one-unit change in the independent variable is expected to have on the dependent variable, holding all else constant


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