setup significance

[takashi]

Hello.
Now I am using eviews for run my research.But I have proplem about setup significance in program.
Please help me "how can I do set significance in program?" I use Eviews version 5.
and I want set significance level 90%
thank you.

[EViews Gareth]

Set the significance of what?

[takashi]

After setting up the null hypothesis and alternate hypothesis,the next step is to state the level of significance.Before formulating a decision rule and collecting sample data. example use the .05 level (95%) or .01 level (90%).
But i do not know about to state the level of significance in Eviews program.How process?
thank you

[startz]

You don't need to set the significance. Run your estimate and look at the resulting test statistic. Then compare it to the critical value for your desired significance level, or look at the p-values which are reported.

[takashi]

when i get result.Can i make a decision to reject H0 or not to reject H0,if i do not know significance level.

[startz]

You need to decide on the significance level in advance, depending on how willing you are to reach the wrong decision. There is nothing in the data nor in EViews that can help you with that.

[takashi]

Ask to add detail

The significance level is usually denoted by the Greek symbol, α (alpha). Popular levels of significance are 5% (0.05), 1% (0.01) and 0.1% (0.001). If a test of significance gives a p-value lower than the α-level, the null hypothesis is rejected. Such results are informally referred to as 'statistically significant'. For example, if someone argues that "there's only one chance in a thousand this could have happened by coincidence," a 0.001 level of statistical significance is being implied. The lower the significance level, the stronger the evidence required. Choosing level of significance is an arbitrary task, but for many applications, a level of 5% is chosen, for no better reason than that it is conventional.[3][4]

In some situations it is convenient to express the statistical significance as 1 − α. In general, when interpreting a stated significance, one must be careful to note what, precisely, is being tested statistically.

Different α-levels trade off countervailing effects. Smaller levels of α increase confidence in the determination of significance, but run an increased risk of failing to reject a false null hypothesis (a Type II error, or "false negative determination"), and so have less statistical power. The selection of an α-level thus inevitably involves a compromise between significance and power, and consequently between the Type I error and the Type II error. More powerful experiments - usually experiments with more subjects or replications - can obviate this choice to an arbitrary degree.

In some fields, for example nuclear and particle physics, it is common to express statistical significance in units of "σ" (sigma), the standard deviation of a Gaussian distribution. A statistical significance of "nσ" can be converted into a value of α via use of the error function:


The use of σ is motivated by the ubiquitous emergence of the Gaussian distribution in measurement uncertainties. For example, if a theory predicts a parameter to have a value of, say, 100, and one measures the parameter to be 109 ± 3, then one might report the measurement as a "3σ deviation" from the theoretical prediction. In terms of α, this statement is equivalent to saying that "assuming the theory is true, the likelihood of obtaining the experimental result by coincidence is 0.27%" (since 1 − erf(3/√2) = 0.0027).

Fixed significance levels such as those mentioned above may be regarded as useful in exploratory data analyses. However, modern statistical advice is that, where the outcome of a test is essentially the final outcome of an experiment or other study, the p-value should be quoted explicitly. And, importantly, it should be quoted whether or not the p-value is judged to be significant. This is to allow maximum information to be transferred from a summary of the study into meta-analyses.

(reference : http://en.wikipedia.org/wiki/Statistica ... n_practice)

Please tell me about Can i set sigfinicance in Eviews program? thank you

[takashi]

I have autocorrelation in my research.I use Durbin Watson Test.So I slove this problem by add Ar(1) in my Model.After that i use P-Value in Hypothesis Testing.It accept H0 that my model has problem.So I want to adjust significance.But i do not know how? Maybe it is effect to Durbin Watson stat.

[takashi]

Dear. Startz

Thank you for your advise. I am understand. :D