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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?
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