Below you are asked to decide on whether or not to use a one-sided alternative or a two-sided alternative hypothesis for the slope coefficient. Briefly justify your decision.
(a) $\hat { q } _ { i } ^ { d }$ = $\hat { \beta }$ ₀ + $\hat { \beta }$ ₁_pi, where q^d is the quantity demanded for a good, and p is its price.
(b) $\hat { p } _ { i } ^ { actual}$ = $\hat { \beta }$ ₀ + $\hat { \beta }$ ₁
$\hat { p } _ { i } ^ { actual}$ , where $\hat { p } _ { i } ^ { actual}$ is the actual house price, and $\hat { p } _ { i } ^ { actual}$ is the assessed house price. You want to test whether or not the assessment is correct, on average.
(c) $\hat { C }$ _i = $\hat { \beta }$ ₀ + $\hat { \beta }$ ₁
$Y _ { i } ^ { d }$ , where C is household consumption, and Y^d is personal disposable income.

Question

Below you are asked to decide on whether or not to use a one-sided alternative or a two-sided alternative hypothesis for the slope coefficient. Briefly justify your decision.
(a)

\hat { q } _ { i } ^ { d }

=

\hat { \beta }

₀ +

\hat { \beta }

₁_pi, where q^d is the quantity demanded for a good, and p is its price.
(b)

\hat { p } _ { i } ^ { actual}

=

\hat { \beta }

₀ +

\hat { \beta }

₁

\hat { p } _ { i } ^ { actual}

, where

\hat { p } _ { i } ^ { actual}

is the actual house price, and

\hat { p } _ { i } ^ { actual}

is the assessed house price. You want to test whether or not the assessment is correct, on average.
(c)

\hat { C }

_i =

\hat { \beta }

₀ +

\hat { \beta }

₁

Y _ { i } ^ { d }

, where C is household consumption, and Y^d is personal disposable income.

Quizplus · Accepted Answer

The Answer of Below you are asked to decide on whether or not to use a one-sided alternative or a two-sided alternative hypothesis for the slope coefficient. Briefly justify your decision. (a) $\hat { q } _ { i } ^ { d }$ = $\hat { \beta }$ ₀ + $\hat { \beta }$ ₁_pi, where q^d is the quantity demanded for a good, and p is its price. (b) $\hat { p } _ { i } ^ { actual}$ = $\hat { \beta }$ ₀ + $\hat { \beta }$ ₁ $\hat { p } _ { i } ^ { actual}$ , where $\hat { p } _ { i } ^ { actual}$ is the actual house price, and $\hat { p } _ { i } ^ { actual}$ is the assessed house price. You want to test whether or not the assessment is correct, on average. (c) $\hat { C }$ _i = $\hat { \beta }$ ₀ + $\hat { \beta }$ ₁ $Y _ { i } ^ { d }$ , where C is household consumption, and Y^d is personal disposable income.

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Below You Are Asked to Decide on Whether or Not $\hat { q } _ { i } ^ { d }$