I have panel dataset with T=15 and N=5 countries. I used hausman test to decide between the fixed and random effect model and i got p-value as 1 which implies random effect model is preferred...Then i also used Breusch Pargan LM test to decide between RE model and pooled OLS model which gives LM statistic as 0 and p-value as 1. This implies that pooled OLS is better. Could anyone tell me whether getting Chi square test statistic of 0 and p-value of 1 is fine or doubtful that something is not right with the data. Any suggestion/comments in this regard will be highly appreciated.
P-value: refers to error level. If pValue is 1, it means the error is 100%. In such a case, whatever you want to proved has been disapproved. When you use 95% confidence interval, the pValue you look for is p < 0.05.
pvalue = 1 should raise a question that something might be wrong. Even if the error is high, it should not be as high as 100%. Recheck you number. Do not rely so much on software. A manual calculation can easily double check: pValue = 1 - CDF.
Paul Louangrath I got a positive critical value and a negative p-value. how to address this issue?
Same issue I faced in analysis with T 20 and N 15. . What a solution?
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