Give Several Economic Examples of How to Test Various Joint

question 15

Essay

Give several economic examples of how to test various joint linear hypotheses using matrix notation. Include specifications of Rβ = r where you test for (i)all coefficients other than the constant being zero, (ii)a subset of coefficients being zero, and (iii)equality of coefficients. Talk about the possible distributions involved in finding critical values for your hypotheses.

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Definitions:

Standard Form

A way of writing down very large or very small numbers easily. In algebra, it refers to the usual way of writing down equations, focusing on linear equations with the general form Ax + By = C.

Ellipse

A shape representing all the points for which the sum of the distances from two fixed points (the foci) is constant.

Vertex

A point where two or more curves, lines, or edges meet. In the context of geometry, it is often used to refer to the corner point of a polygon or the apex of a cone or pyramid.

Parabola

The graph of a quadratic function, a U-shaped curve that can open upwards or downwards, determined by the function's coefficients.