Suppose You Wish to Know Whether Age and Family Size

question 16

Multiple Choice

Suppose you wish to know whether Age and Family Size are jointly significant in the model $$\text { Cigarettes Per Day } = \beta _ { 0 } + \beta _ { 1 } \text { Age } + \beta _ { 2 } \text { Family Size } + \beta _ { 3 } \text { Years of Education. }$$
The appropriate null hypothesis for this test is

• A)H₀: β₀ = β₁ = β₂ = β₃ = 0.
• B)H₀: β₁ = β₂ = 0.
• C)H₀: β₁ = 0.
• D)H₀: β₂ = 0.

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Definitions:

Goods

Goods are tangible items that satisfy human wants or needs, which can be transferred from one person to another and include consumer products, commodities, and durable goods.

Indifference Schedule

A graphical representation in economics that shows combinations of goods among which a consumer is indifferent.

Unit of Y

A hypothetical unit used in economic models to represent output or goods produced.

Fourth Unit

Referring to a specific, individual measure or item in a sequence, often used to highlight a particular point in quantitative analysis.