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From |
Kit Baum <baum@bc.edu> |

To |
statalist@hsphsun2.harvard.edu |

Subject |
st: Re: two-tailed test |

Date |
Sat, 23 Oct 2004 09:02:30 -0400 |

On Oct 23, 2004, at 2:33 AM, Eric wrote:

I don't know if Eric considers economics a social (antisocial?) or hard science, but I find this statement bordering on the ludicrous. Imagine a model(since you shouldn't really do two-tailed tests if you have a theory and if you don't have a theory, you shouldn't be doing at least social science--I'll let the hard sciences speak for themselves).

y = b0 + b1 x + b2 x^2 + e

From the standpoint of economic theory, there could be either a concave or convex relationship between y and x (that is, the second derivative is not signed by theory, depending on the shape of individuals' preferences). The data might be able to tell us that one of those cases exist, or they might be not sufficiently informative to reject the null b2 = 0. There is nothing wrong with a two-tailed test.

The ability to 'get one tailed tests automatically': is Stata automatically supposed to know which tail should be considered, or should it perform like 'ttest' and give you both? That IMHO would be more confusing for some people than their recalling the rule: if the test stat is on the wrong side of the inequality, don't reject; if it is on the right side, divide the pval by 2.

Kit Baum, Boston College Economics

http://ideas.repec.org/e/pba1.html

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