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Jan 20, 2013 at 2:22 comment added Arthur Small @Thilo: Oh, dear. I suppose I invited that follow-up, so have only myself to blame. Answering would, alas, take a long while. 'Any' stats textbook will cover the topic: see, e.g., W.H. Greene, Econometric Analysis. On 'why not?', I'll recommend a book I find canonical that covers the philosophical and practical problems of hypothesis testing quite well and in depth: Statistical Decision Theory and Bayesian Analysis by J.O. Berger, amazon.com/gp/product/1441930744. Very short answer: I'm interested in using stats to make better decisions under uncertainty. HT doesn't help.
Jan 20, 2013 at 1:37 vote accept Thilo
Jan 20, 2013 at 1:37 comment added Thilo Great answer, exactly what I was looking for. For completeness, can you also provide a link to hypothesis testing and why you don't like it?
Jan 17, 2013 at 17:05 comment added Arthur Small There is a noteworthy economic literature on statistical measurement of race and sex discrimination in, e.g., labor markets, that might be useful. A seminal work is: The Statistical Theory of Racism and Sexism Edmund S. Phelps The American Economic Review Vol. 62, No. 4 (Sep., 1972), pp. 659-661 Published by: American Economic Association Article Stable URL: jstor.org/stable/1806107
Jan 17, 2013 at 14:23 history edited Arthur Small CC BY-SA 3.0
In example: Replaced hand-waving approximate odds ratio with exact calculation; added brief proviso about election procedures for U.S. senators.
Jan 17, 2013 at 5:30 history edited Arthur Small CC BY-SA 3.0
Added interpretation of the numerical result as an odds ratio.
Jan 17, 2013 at 5:19 history answered Arthur Small CC BY-SA 3.0