VL3

What simplifying assumption do we have in hypothesis testing?

Overview: graphical representation hetero vs homoskedacity.

Overview: Definition of variance of b1 hat.

How can we get an unbiased estimator of sigma^2?

What does the t-statistic tell us?

Example of calculating the t-statistic and interpreting it.

Explain MLR 6.

What is the t-distribution?

How to interpret the results from a t statistic.

When do we reject the null hypothesis?

What are critical values?

What is the rejection rule for t-statistics and critical values?

What is the difference between critical and economic significance?

What are confidence intervalls?

What are the rejection rules for confidence intervalls?

How can we test linear combinations in hypothesis testing?

What is a joint hypotheses test?

Remarks F test.

What’s the difference between t test and f test?