Parameter Estimation and Evaluation Introduction to Hypothesis Testing Introduction to Hypothesis Testing Example 2(9.2)[Constant Return to Scale Hypothesis] A production function Y=F(L,K) tells how much output Y to produce using inputs of labor L and capital k.A production technology is said to display a constant return to scale if the output increases by the same proportion as the inputs increase;that is,for all A >0, λF(L,K)=F(λL,入K). Hypothesis Testing Introduction to Statistics and Econometrics July7,2020 8/110Parameter Estimation and Evaluation Hypothesis Testing Introduction to Statistics and Econometrics July 7, 2020 8/110 Introduction to Hypothesis Testing Introduction to Hypothesis Testing Example 2 (9.2) [Constant Return to Scale Hypothesis]