Essay
Below you are asked to decide on whether or not to use a one-sided alternative or a two-sided alternative hypothesis for the slope coefficient.Briefly justify your decision.
(a) =
0 +
1pi,where qd is the quantity demanded for a good,and p is its price.
(b) =
0 +
1
,where
is the actual house price,and
is the assessed house price.You want to test whether or not the assessment is correct,on average.
(c) i =
0 +
1
,where C is household consumption,and Yd is personal disposable income.
Correct Answer:

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(a)You would use a one-sided alternative...View Answer
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