Carbon Credits (Carbon Farming Initiative—Aggregated Small Energy Users) Methodology Determination 2015
56Statistical significance of treatment effect
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56 Statistical significance of treatment effect
The statistical significance (if any) of the estimated treatment effect on a site in a population in the project in a measurement period in the reporting period is worked out using the hypothesis test (hypothesis test 3):
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where:
H0 means the hypothesis (the null hypothesis) that the targeting of the treatment to the site has no effect on average daily emissions of greenhouse gas at the site.
means the effect, on average daily emissions of greenhouse gas at the site in the measurement period, of targeting treatment to the site in the measurement period.
Halt means the hypothesis (the alternative hypothesis) that the targeting of the treatment to the site reduces average daily emissions of greenhouse gas at the site.
t means the test statistic for a single‑sample t‑test.
E means the estimated effect, on average daily emissions of greenhouse gas at the site in the measurement period, of targeting treatment to the site in the measurement period, worked out using regression equation 1.
se(E) means the standard error of E.
T(p = 0.05) means:
(a) for degrees of freedom less than 2 400—the value from the standard t distribution table with (NC + NT ‑ (v + 1)) degrees of freedom and probability 0.05; or
(b) for degrees of freedom exceeding 2 400—the value of ‑1.6449.
Note: The 0.05 values of the test statistic are from the lower 5 percentage points of the distribution.
NC means the number of sites included in the control group for all or part of the measurement period.
NT means the number of sites included in the treatment group for all or part of the measurement period.
v means the number of independent variables used in regression equation 1.
Note: There may be more than one independent variable used for Ws,t and there may be more than one explanatory variable used for OtherVariabless,k. Each variable used is a separate independent variable.