How would you test the restrictions using both a t-test and an f-test. Regression A: yi = Bo + B1x1 + B2x2 + B3x3 + u Where B is beta. A.) B1 - B2 = 1 B.) B1 + aB2 = 0 (where a is a constant) C.) B2 - B3 = 1 (I am looking for an answer defining the hypothesis, for example: Ho: B1 = 0 Ha: B2 does not = 0)

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter2: Equations And Inequalities
Section2.1: Equations
Problem 77E
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How would you test the restrictions using
both a t-test and an f-test.
Regression A: yi = Bo + B1x1 + B2x2 + B3x3
+ u
Where B is beta.
A.) B1 - B2 = 1
B.) B1 + aB2 = 0 (where a is a constant)
С.) В2 - ВЗ %3 1
(I am looking for an answer defining the
hypothesis, for example: Ho: B1 = 0 Ha: B2
does not = 0)
Transcribed Image Text:How would you test the restrictions using both a t-test and an f-test. Regression A: yi = Bo + B1x1 + B2x2 + B3x3 + u Where B is beta. A.) B1 - B2 = 1 B.) B1 + aB2 = 0 (where a is a constant) С.) В2 - ВЗ %3 1 (I am looking for an answer defining the hypothesis, for example: Ho: B1 = 0 Ha: B2 does not = 0)
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