Null hypothesis vs. alternative hypothesis
Econ 620 Null hypothesis vs. alternative hypothesis Suppose that we have data y =(y1,···,yn) and the data is generated by the true probability distribution Pθ0, from a family of probability distribution Pθ indexed by θ ∈ Θ. We can partition the parameter space Θ into two subsets, Θ0 and ΘA. Now, consider the following two hypothesis;
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