Evaluate the following statement made by Henry Theil:* Given the present state of the art, the most

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Evaluate the following statement made by Henry Theil:*
Given the present state of the art, the most sensible procedure is to interpret confidence coefficients and significance limits liberally when confidence intervals and test statistics are computed from the final regression of a regression strategy in the conventional way. That is, a 95 percent confidence coefficient may actually be an 80 percent confidence coefficient and a 1 percent significance level may actually be a 10 percent level.

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Basic Econometrics

ISBN: 978-0073375779

5th edition

Authors: Damodar N. Gujrati, Dawn C. Porter

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