In order to formulate whether or not the alternative hypothesis is one-sided or two-sided, you need some guidance from economic theory
Choose at least three examples from economics or other fields where you have a clear idea what the null hypothesis and the alternative hypothesis for the slope coefficient should be. Write a brief justification for your answer.
What will be an ideal response?
Answer: Answers will vary by student. The problem is to find examples where there is only a single explanatory variable. A student may argue that the price coefficient in a demand function is downward sloping, but unless you control for other variables, this may not be so. The demand for L.A. Laker tickets and their price comes to mind. CAPM is a nice example. Perhaps the marginal propensity to consume in a consumption function is another. Testing for speculative efficiency in exchange rate markets may also work.
You might also like to view...
Monetary policy has a greater impact in an open economy than it does in a closed economy
Indicate whether the statement is true or false
Last year Christine worked as a consultant. She hired an administrative assistant for $15,000 per year and rented office space (utilities included) for $3,000 per month. Her total revenue for the year was $100,000. If Christine hadn't worked as a consultant, she would have worked at a real estate firm earning $40,000 a year.Christine's opportunity cost of working as a consultant last year was ________.
A. $36,000 B. $15,000 C. $51,000 D. $40,000
Most economists agree that the focus of fiscal policy is to
A. plan the economy. B. balance aggregate demand and aggregate supply. C. balance the federal budget. D. balance environmental needs and resources.
Which of the following is a major obstacle to economic growth in DVCs?
A. A fall in population growth B. A decline in demographic transition C. The low demand for natural resources D. The low supply of saving