Parameter Estimation and Evaluation Introduction to Hypothesis Testing Introduction to Hypothesis Testing The problem is to determine to which of these two subsets the true value of 0 belongs.That is,based upon an observed data set x",one is trying to choose between the two hypotheses H0:0∈Θ0 versus HA:0∈ΘA. The first hypothesis Ho is called the null hypothesis,and the second HA,is called the alternative hypothesis. ●Ho is called the“null”hypothesis because it is often stated as“no effects”or“no relationship”.One example,isHo:f=0 versus lA:0≠0，as is the case of Example9.1. Hypothesis Testing Introduction to Statistics and Econometrics Juy7,2020 71110Parameter Estimation and Evaluation Hypothesis Testing Introduction to Statistics and Econometrics July 7, 2020 7/110 Introduction to Hypothesis Testing Introduction to Hypothesis Testing