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The Official Journal of the Pan-Pacific Association of Input-Output Studies (PAPAIOS)

Table 1 Summary of tests of the assumption of stochastic frontier approach

From: Technical efficiency of smallholder farmers in red pepper production in North Gondar zone Amhara regional state, Ethiopia

Null hypothesis

Degree of freedom

\({\text{LR}}\)

\(x^{2}\) value

Decision

\(H_{0} : \gamma = 0\)

1

53.94

3.84

Not accepted

\(H_{0} : \beta_{7} = \cdots = \beta_{27} = 0\)

21

30.60

32.67

Accepted

\(H_{0} : \delta_{0} = \cdots = \delta_{14}\)

14

53.94

23.69

Not accepted