One-Sided Alternatives (cont) Having picked a significance level,a,we look up the (1-a)th percentile in a t distribution with n-k -1 df and call this c,the critical value We can reject the null hypothesis if the t statistic is greater than the critical value If the t statistic is less than the critical value then we“fail to reject'the null,.not“accept'”the null, Econometrics 15-Zhuxi@SJTU 14Econometrics 15 - Zhuxi@SJTU 14 One-Sided Alternatives (cont) Having picked a significance level, , we look up the (1 – ) th percentile in a t distribution with n – k – 1 df and call this c, the critical value We can reject the null hypothesis if the t statistic is greater than the critical value If the t statistic is less than the critical value then we “fail to reject” the null, not “accept” the null