Consider the following regression results based on 30 observations. Notes: Parameter estimates are in the main body of the table with the p-values in parentheses;* represents significance at 5% level.The last row presents the error sum of squares.
A)Formulate the hypotheses to determine whether x₂ and x₃ are jointly significant in explaining y.
B)Define the restricted and the unrestricted models needed to conduct the test.
C)Calculate the value of the test statistic.
D)At the 5% significance level,find the critical value(s).
E)What is your conclusion to the test?

Question

Consider the following regression results based on 30 observations.

Notes: Parameter estimates are in the main body of the table with the p-values in parentheses;* represents significance at 5% level.The last row presents the error sum of squares.
A)Formulate the hypotheses to determine whether x₂ and x₃ are jointly significant in explaining y.
B)Define the restricted and the unrestricted models needed to conduct the test.
C)Calculate the value of the test statistic.
D)At the 5% significance level,find the critical value(s).
E)What is your conclusion to the test?

Quizplus · Accepted Answer

The Answer of Consider the following regression results based on 30 observations. Notes: Parameter estimates are in the main body of the table with the p-values in parentheses;* represents significance at 5% level.The last row presents the error sum of squares. A)Formulate the hypotheses to determine whether x₂ and x₃ are jointly significant in explaining y. B)Define the restricted and the unrestricted models needed to conduct the test. C)Calculate the value of the test statistic. D)At the 5% significance level,find the critical value(s). E)What is your conclusion to the test?

Consider the Following Regression Results Based on 30 Observations