ECON 2010 Lecture : Lecture7 Macro2010 3
Document Summary
Generate a hypothesis i think this happens because . Make predictions based on hypothesis if i am right then this will happen. We cannot ever prove something is true (because we can"t measure every situation) We can find evidence that the alternative is unlikely or untrue. Ex: all men are stronger than all women find one woman stronger and it"s disproven. We go with what is more likely true than not . Null hypothesis (h0): what we test (in statistics), but not our preferred outcome; says there"s no difference/relationship between variables, no influence of 3rd variable on relationship of others. We test the null hypothesis how likely is it we would see that pattern in the sample data if there was no relationship between the variables in the population. If we find evidence that the null hypothesis is unlikely to be true, we reject it and accept the alternate hypothesis.
