70 Hypothesis testing Worked example 2

This video demonstrates how to perform a one-tailed hypothesis test in econometrics, specifically answering whether education increases wages. We'll walk through an example using a critical value approach, calculating the T statistic and determining the critical value to make a decision about the null hypothesis. This explanation focuses on the nuances of a directional hypothesis and how it impacts the testing process and interpretation. Learn how to set up your hypotheses, compute your test statistic, find the critical value, and draw conclusions. Subscribe to @AxiomTutoringCourses for more econometrics tutorials.