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:

Monetary Policy

Monetary policy involves the management of a country's money supply and interest rates by its central bank to control inflation, unemployment, and economic growth.

Reserve Requirements

Regulations set by central banks determining the minimum amount of reserves that banks must hold against deposits, influencing the bank's ability to lend.

Money Supply

The total amount of monetary assets available in an economy at any specific time, including cash, bank deposits, and other liquid assets.

Deposit Expansion Multiplier

A ratio that explains the total increase in deposits within the banking system generated from an initial deposit, based on the reserve requirement ratio.