Directed $T$ Tests of Inequality Constraints Under Alternatives in Linear and Nonlinear Models

• Activity Number: 472
• Type: Contributed
• Date/Time: Wednesday, August 1, 2012 : 8:30 AM to 10:20 AM
• Sponsor: Business and Economic Statistics Section
• Author(s): Zeng-Hua Lu*+
• Companies: University of South Australia
• Keywords: Consistent test ; Most stringent test ; One-sided hypothesis ; Unbiased test

Abstract

This paper constructs Directed One-Sided $t$ (DOST) tests of inequality constraints under the alternative hypothesis based on the idea of % \citeasnoun{swsl66}. Some properties of DOST tests are presented. These properties are shown to compare favorably to another multivariate one-sided $% t$ type tests known as locally most mean powerful tests. Simulation studies reveal that DOST tests can outperform existing tests. Finally, we report an empirical study in which we test the proposition that a more severe child disability is associated with a higher adverse impact on the work hours of affected Australian women.