After a model has been estimated, you may wish to test hypotheses about the value of an estimated coefficient. By default, Wizard performs a two-tailed test of statistical significance (difference from zero), but you can also perform a one-tailed test for negativity or positivity.
Wizard supports three kinds of hypothesis tests for individual model coefficients. Each is associated with a null hypothesis, as described in the table below.
| Hypothesis test | Null hypothesis | Formula |
|---|---|---|
| Statistical significance | Coefficient is zero | β=0 |
| Negativity test | Coefficient is non-positive | β≤0 |
| Positivity test | Coefficient is non-negative | β≥0 |
To test one of these hypotheses about a model coefficients:
Wizard performs the hypothesis test using a t-statistic for linear models, and a z-score for non-linear models.
See also: