Question
Economics Question on Quantitative Economics
What is the difference between a hypothesis test and a confidence interval?
A hypothesis test is used to determine whether a difference between two groups is statistically significant, while a confidence interval is used to estimate the population mean.
A hypothesis test is used to determine whether a correlation between two variables is statistically significant, while a confidence interval is used to estimate the population proportion.
A hypothesis test is used to determine whether a regression model is statistically significant, while a confidence interval is used to estimate the population variance.
A hypothesis test is used to determine whether a model fits the data well, while a confidence interval is used to estimate the population standard deviation.
A hypothesis test is used to determine whether a difference between two groups is statistically significant, while a confidence interval is used to estimate the population mean.
Solution
The correct option is (A): A hypothesis test is used to determine whether a difference between two groups is statistically significant, while a confidence interval is used to estimate the population mean.