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A Note on the Bias of O'Brien's OLS Test

โœ Scribed by Hans Frick

Publisher
John Wiley and Sons
Year
1997
Tongue
English
Weight
219 KB
Volume
39
Category
Article
ISSN
0323-3847

No coin nor oath required. For personal study only.

โœฆ Synopsis

O'Brien's Ordinary Least Squares (OLS) test is a well known procedure for testing the multivariate one-sided hypothesis when the covariance matrix is unknown. Simulation results have been reported where the actual test level ex& the nominal one. Here it is shown analytically that the actuai level is always larger than the nominal one if the covariance matrix is nonnegative.

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