Consider the following regression model: Y; = Bo + B1X11 + B2X2¡ + B3X3¡ + B4X4i + U¿ We want to test the following null hypothesis: Họ: B2 = B3 vs. H1: B2 # B3 The initial regression, so that the null hypothesis can be tested using the t-statistic mth (testing a restriction on a single regression coefficient), can be rewritten using the follo form:

Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
6th Edition
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Bruce Crauder, Benny Evans, Alan Noell
Chapter5: A Survey Of Other Common Functions
Section5.6: Higher-degree Polynomials And Rational Functions
Problem 1TU: The following fictitious table shows kryptonite price, in dollar per gram, t years after 2006. t=...
icon
Related questions
Question
Consider the following regression model:
Y; = Bo + B1X11 + B2X2¡ + B3X3¡ + B4X4¡ + U¿
We want to test the following null hypothesis:
Ho: B2 = B3
vs. H1: B2 + ß3
The initial regression, so that the null hypothesis can be tested using the t-statistic method
(testing a restriction on a single regression coefficient), can be rewritten using the following
form:
Y; = Bo + B1X1i +Y1X2i + B3W¡ + B4X41 + Uj
where W; can be calculated from the data.
Here, yı.
- Вг — Вз. Нere, W,.
X3i + X2i.
A)
+, =
=, =
D)
=, +
9.
Transcribed Image Text:Consider the following regression model: Y; = Bo + B1X11 + B2X2¡ + B3X3¡ + B4X4¡ + U¿ We want to test the following null hypothesis: Ho: B2 = B3 vs. H1: B2 + ß3 The initial regression, so that the null hypothesis can be tested using the t-statistic method (testing a restriction on a single regression coefficient), can be rewritten using the following form: Y; = Bo + B1X1i +Y1X2i + B3W¡ + B4X41 + Uj where W; can be calculated from the data. Here, yı. - Вг — Вз. Нere, W,. X3i + X2i. A) +, = =, = D) =, + 9.
Expert Solution
Step 1

From the given information,

The regression model is,

Yi=β0+β1X1i+β2X2i+β3X3i+β4X4i+ui

And

H0:β2=β3 and H1:β2β3

After testing the above hypothesis, we can write the regression equation as,

Yi=β0+β1X1i+γ1X2i+β3Wi+β4X4i+ui............(1)

 

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Functions and Change: A Modeling Approach to Coll…
Functions and Change: A Modeling Approach to Coll…
Algebra
ISBN:
9781337111348
Author:
Bruce Crauder, Benny Evans, Alan Noell
Publisher:
Cengage Learning