Which model is better?

Discussion in 'SP8' started by jensen, Apr 25, 2012.

  1. jensen

    jensen Member

    Hi

    I got confused when I look at two different questions asking us to comment on whether an alternative (nested) model is better than the other.

    In Sept 2011 Q9 iii, our test statistic is less than the critical point, so the alt model is not significantly better than original model (solution says reject original model in favour of alt).

    In Q&A Bank 4.3 (2011) our test statistic is greater than critical point, so we conclude alt model is P313 improvement over original. I assume we reject original in favour of alt.

    Why are the conclusions the same irrespective of the test statstic? What am I missing??


    UPDATE: Found more material to suspect 2011 Sept erxaminers' report. Acted chapter 16 Q16.6 solution seems to be conflicting with the report's.
     
    Last edited by a moderator: Apr 25, 2012
  2. 12345

    12345 Member

    I think this is because in the September 11 question we are excluding factors whereas we are including factors in the Q&A bank question
     
  3. jensen

    jensen Member

    Oool. Thanks, I'll keep that in mind.

    Good luck to everyone! I'm going in in 6 hrs.
     

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