When Testing Linear Restrictions,the Test Statistic Is Assumed to Follow

question 81

Multiple Choice

When testing linear restrictions,the test statistic is assumed to follow the y = β₀ + β₁x₁ + β₂x₂ + β₃x₃ + ε,you wish to test H₀: β₁ = β₂ versus H_A: β₁ ≠ β₂ The value of the test statistic is F_(1,30) = 7.75 and its associated p-value is 0.0092.At the 1% significance level,the conclusion is to ____________________________________________________________________________.

• A) reject the null hypothesis and conclude that the influence of x1 and x2 on y is the same
• B) reject the null hypothesis and conclude that the influence of x1 and x2 on y is not the same
• C) not reject the null hypothesis and conclude that the influence of x1 and x2 on y is the same
• D) not reject the null hypothesis and conclude that the influence of x1 and x2 on y is not the same

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Definitions:

High-low Method

A technique in cost accounting used to determine the variable and fixed components of a company's costs by analyzing the highest and lowest levels of activity.

Machine Hour

A measure of the amount of time a machine is operated, used in cost accounting to allocate costs to products based on machine usage times.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.

Sales Revenue

The total amount of money generated by a company from its sales of goods or services before any expenses are subtracted.