Discuss the confidence interval approach and the test of significance | ECO 342 Principles of Econometrics | Ashford University
Discuss the confidence interval approach and the test of significance approach in hypothesis testing.
Respond to at least two of your classmates’ postings.
Tips & Hints for Success
I specifically discuss confidence intervals and test of significance in my Guidance for this week. This is also discussed in our text. My expectation is that you will read these before answering this Discussion. Be sure to take advantage of these resources in your response. This will make this Discussion easier and more value-added all around!
These are important concepts that I employ almost every week!
This Discussion Board seeks to encourage you to consider the similarities and differences (this is what “Discuss” always means in an essay assignment) between the confidence interval approach and test of significance approach to hypothesis testing. You’ll find the latter discussed in detail beginning on page 68 of Gujarati & Porter. And, as always, you will want to be sure to read my Supplemental Guidance for a head start! One of the things that I think you’ll discover is that the confidence interval and test of significance approaches to hypothesis testing are pretty much complementary (e.g., two sides of the same coin)… but they are nonetheless rather different in concept and quite different in practical application.