## Testing hypothesis

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# Testing hypothesis

I use proc reg statement where the model is y=b1x1+b2x2+e. How can I test the hypothesis that B1 >= B2. The test statement examines linear equations only.

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‎12-15-2014 10:40 PM
Posts: 5,540

## Re: Testing hypothesis

In proc reg, use the statement

test X2-X1;

and divide the p-value by two (because you are doing a unilateral test). Now, if B1 < B2 and the p-value is significant, then the hypothesis B1 >= B2 is contradicted by your data. Otherwise, your hypothesis holds (i.e. it is not contradicted by your data).

PG

PG

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Solution
‎12-15-2014 10:40 PM
Posts: 5,540

## Re: Testing hypothesis

In proc reg, use the statement

test X2-X1;

and divide the p-value by two (because you are doing a unilateral test). Now, if B1 < B2 and the p-value is significant, then the hypothesis B1 >= B2 is contradicted by your data. Otherwise, your hypothesis holds (i.e. it is not contradicted by your data).

PG

PG
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