A Note on Minimax Testing and Confidence Intervals in Moment Inequality Models

A Note on Minimax Testing and Confidence Intervals in Moment Inequality Models

This note uses a simple example to show how moment inequality models used in the empirical economics literature lead to general minimax relative efficiency comparisons. The main point is that such models involve inference on a low dimensional parameter, which leads naturally to a definition of “distance” that, in full generality, would be arbitrary in minimax testing problems. This definition o...

A NOTE ON MINIMAX TESTING AND CONFIDENCE INTERVALS IN MOMENT INEQUALITY MODELS By

This note uses a simple example to show how moment inequality models used in the empirical economics literature lead to general minimax relative efficiency comparisons. The main point is that such models involve inference on a low dimensional parameter, which leads naturally to a definition of “distance” that, in full generality, would be arbitrary in minimax testing problems. This definition o...

A Note on Teaching Binomial Confidence Intervals

Confidence Intervals and Hypothesis Testing.∗

If you have just two discrete hypotheses, then a hypothesis test is simply an application of Bayes’ Theorem. You check to see whether your data can reasonably be explained by that boring old null hypothesis (conventionally called H0), or not. To test H0, you need to compare it to one other model. One never tests a hypothesis in isolation; it is tested against an alternative (typically called H1...

Significance Testing and Confidence Intervals

probabilities, it can be determined that combining the probability values of 0.11 and 0.07 results in a probability value of 0.045. Therefore, these two nonsignificant findings taken together result in a significant finding. Although there is never a statistical basis for concluding that an effect is exactly zero, a statistical analysis can demonstrate that an effect is most likely small. This ...