A Joint Hypothesis That Is Linear in the Coefficients and Imposes

question 10

Short Answer

A joint hypothesis that is linear in the coefficients and imposes a number of restrictions can be written as a. $\left( \boldsymbol { X } ^ { \prime } \boldsymbol { X } \right) ^ { - 1 } \boldsymbol { X } ^ { \prime } \boldsymbol { Y }$ .
b. $\boldsymbol { R } \boldsymbol { \beta } = \boldsymbol { r }$ .
c. $\hat { \beta } - \beta$ .
d. $\boldsymbol { R } \boldsymbol { \beta } = \mathbf { 0 }$ .

---

Definitions:

Non-Cumulative

Pertaining to preferred stock, which does not accumulate unpaid dividends if they are not declared.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, often with fixed dividends.

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing corporation, reducing the number of shares outstanding in the market.

Gain On Sale

The profit realized from the sale of an asset, when the selling price exceeds its original purchase price.