ECON 1 Lecture Notes - Lecture 15: Statistical Hypothesis Testing, Stellar Population, Theory Of Reasoned Action

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5 Oct 2020
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Instead, it is easier to state what a (good) theory does: It describes reality, explains reality, and, if possible, tells how we can change reality. Thus, theory guides our empirical research and our interventions in practice. Theory is a set of statements about the relationship(s) between two or more concepts or constructs (pawar, 2009) Theory is a system of interconnected abstractions or ideas that condenses and organizes knowledge about the world. Theory is a generalized statement that asserts a connection between two or more types of phenomena. Theory is a set of analytical principles or statements designed to structure our observation, understanding and explanation of the world: a good theory provides a clear explanation of how and why specific relationships lead to specific events. Theories vs. models: models can be described as theories with a more narrowly defined scope of explanation, a model is descriptive, whereas a theory is explanatory as well as descriptive.

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