Consider the two variable regression model: Y, = , + P, Edu, + P2EXP2 + u,. where Y denotes the average monthly income, Edu denotes the number of years of education, Exp denotes the number of years of experience, and u; denotes the error term. Suppose the researcher wants to test whether the effect of education on average monthly income and the effect of experience on the average monthly income of an individual are the same or not. So, the test the researcher wants to conduct is Ho: B1 = B2 vs. H,: B # B2 Which of the following is the modified regression so that hypothesis testing can be carried out using the t-statistic? O A. Y,= Po +7,Edu,, + B,W1;+ u, where y, = B, + B2 and W, = Edu, - Exp2 O B. Y,= Po +7,Edu,, + B,W, + u,, where y, = Edu,, - Exp2, and W, = B, - B2- OC. Y,= Po +r,Edu, + P2W, + u, where y, = Edu, + Exp2, and W, = 6, - P2- OD. Y,= Po +7,Edu,, + B,W1, +u;, where y, = P, - B2 and Ww, = Edu,, + Exp2 - Suppose the population regression is of the form: The 95% confidence set for the coefficients B, and f, will be v which contains the pairs of values of B, and B, that rejected using the F-statistic at the 5% significance level.

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Consider the two variable regression model:
Y; = Po + B,Edu + B2EXP2; + Uj.
where Y denotes the average monthly income, Edu denotes the number of years of education, Exp denotes the number of years of experience, and u; denotes the error term.
Suppose the researcher wants to test whether the effect of education on average monthly income and the effect of experience on the average monthly income of an individual are the same or not. So, the test the researcher wants to conduct is Hn: B1 = B, vs. H1: B1 + B3.
Which of the following is the modified regression so that hypothesis testing can be carried out using the t-statistic?
O A. Y;= Po +r,Edu,; + B2W1;+u;, where y, = B, + B2 and W; = Edu,; - Exp2i-
O B. Y;= Po +Y,Edu,; + B2W; + u;, where y; = Edu,; - Exp2; and W; = B, - B2-
O C. Y;= Po +Y,Edu,; + B2W; + u;, where y; = Edu,, + Exp2; and W; = B, - B2-
O D. Y;= Po +Y, Edu,; + B2W1; + u;, where y, = B1 - B2 and W; = Edu,, + Exp2i
Suppose the population regression is of the form:
Y; = Po + B,X1i + B2X2; + uj-
The 95% confidence set for the coefficients B, and B2 will be
v which contains the pairs of values of B, and B, that
rejected using the F-statistic at the 5% significance level.
Transcribed Image Text:Consider the two variable regression model: Y; = Po + B,Edu + B2EXP2; + Uj. where Y denotes the average monthly income, Edu denotes the number of years of education, Exp denotes the number of years of experience, and u; denotes the error term. Suppose the researcher wants to test whether the effect of education on average monthly income and the effect of experience on the average monthly income of an individual are the same or not. So, the test the researcher wants to conduct is Hn: B1 = B, vs. H1: B1 + B3. Which of the following is the modified regression so that hypothesis testing can be carried out using the t-statistic? O A. Y;= Po +r,Edu,; + B2W1;+u;, where y, = B, + B2 and W; = Edu,; - Exp2i- O B. Y;= Po +Y,Edu,; + B2W; + u;, where y; = Edu,; - Exp2; and W; = B, - B2- O C. Y;= Po +Y,Edu,; + B2W; + u;, where y; = Edu,, + Exp2; and W; = B, - B2- O D. Y;= Po +Y, Edu,; + B2W1; + u;, where y, = B1 - B2 and W; = Edu,, + Exp2i Suppose the population regression is of the form: Y; = Po + B,X1i + B2X2; + uj- The 95% confidence set for the coefficients B, and B2 will be v which contains the pairs of values of B, and B, that rejected using the F-statistic at the 5% significance level.
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