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Answer on Other Economics Question for Quan

Question #32558
How do economist test their hypothesis
Expert's answer
Hypothesis testing is a process by which an analyst tests some assumptions.The methodology employed by the economists depends on the nature of the data
used, and the goals of the analysis. Hypotheses can be tested empirically (by
reference to the facts revealed in the study) or logical (using interpretation
of concepts, logical model of the concept). Another way to test a hypothesis is
modeling. The economic model is a simplified description of reality, it's a
framework designed to illustrate complex processes, often using mathematical

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