What is Empirical Testing?

Empirical testing is a research method that employs direct and indirect observation and experience. These observations are recorded and analyzed using quantitative methods. 

Back to:ECONOMIC ANALYSIS & MONETARY POLICY

What is the Empirical Cycle?

The empirical cycle includes the following elements:

• Observation: Observation is the process of identifying the problem and its causes. 
• Induction: The idea or hypothesis is developed on the basis of observation. 
• Deduction: Deduction is the process to formulate experiments to check the hypothesis 
• Testing: Testing is the technique used to check the hypotheses and data related to hypothesis. 
• Evaluation: In this stage, results are interpreted explanations are presented.

How Does Scientific Research Relate to Empirical Research

The empirical method allows a scientific researcher to verify the results of research with the help of statistical tools. 

Empirical scientific research generally proceeds as follows:

• A researcher uses a particular theory relating to a subject of research and develops hypotheses upon that theory. 
• Then the researcher derives many predictions from the hypothesis or research question. 
• Those predictions can then be examined with a suitable test. Empirical evidence (the record of one's direct observations or reports) can be analyzed quantitatively or qualitatively. 
• The hypothesis will be accepted or rejected based upon the results of hypothesis or research question. 

Common statistical tools include: regression, risk coefficient, t-test, chi square, and different forms of ANOVA (analyses of variance).