Imprecise Tests and Imprecise Hypotheses

A. C. Darnell

Scottish Journal of Political Economy, 1997, vol. 44, issue 3, 247-268

Abstract: This paper argues that theoretical predictions can only ever be expected to hold inexactly empirically, and constructs a method of inexact tests of exact hypotheses. Using a two‐parameter cost structure of ‘acceptance’ and ‘rejection’ of a simple null hypothesis, recognising a distinction between ‘statistical’ and ‘material’ significance, hypotheses are ‘accepted’ if they are only ‘slightly’ false. This may be contrasted with the exact testing of inexact hypotheses and the circumstances in which the two methods are equivalent are identified. The proposal facilitates informed decisions regarding the size and power of tests of simple hypotheses, and provides a transparent method of testing.

Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://doi.org/10.1111/1467-9485.00056

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:scotjp:v:44:y:1997:i:3:p:247-268

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0036-9292

Access Statistics for this article

Scottish Journal of Political Economy is currently edited by Tim Barmby, Andrew Hughes-Hallett and Campbell Leith

More articles in Scottish Journal of Political Economy from Scottish Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().