Adjustment of a Studentized Test Statistic and a Normalized Test Statistic in a Simple Linear Structural Relationship

Limiting distributions of Studentized test statistics have been shown for testing the slope parameter in a simple linear structural model. Since the limiting distribution of Studentized one appears to yield inaccurate inference, this paper suggests adjustment of critical value and normalization of the Studentized one. As results, we can have procedures for refined inference based on our approximate distrbution instead of the limiting distribution.