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 x₂and 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 x₂and 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 x₂and 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