EViews Gareth wrote:Probabilities of the alternative hypotheses (that forecast 1 differs in accuracy from forecast 2, forecast 1 is less accurate, forecast 2 is more accurate).
Thank you, so would this be correct. Would appreciate some clarification.
<>prob
H0: Both Forecasts have the same accuracy
H1: The forecasts do not have the same accuracy
<0.05, reject null, accept alternative hypothesis
>0.05 accept null, both forecasts have the same accuracy
>Prob
H0: Forecast 1 is more accurate than Forecast 2
H1: Forecast 1 is less accurate than forecast 2
<0.05, reject null, accept alternative hypothesis
>0.05 accept null, Forecast 1 is more accurate than Forecast 2
<Prob
H0: Forecast 2 is less accurate than Forecast 1
H1: Forecast 2 is more accurate than Forecast 1
<0.05, reject null, accept alternative hypothesis
>0.05 accept null, Forecast 2 is less accurate than Forecast 1