Consider the Following Regression Results Based on 30 Observations

question 104

Essay

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?

• 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?

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