# Question

In a study of the influence of financial institutions on bond interest rates in Germany, quarterly data over a period of 12 years were analyzed. The postulated model was

y = β0 + β1x1 + β2x2 + ε

where

y = change over the quarter in the bond interest rates

x1 = change over the quarter in bond purchases by financial institutions

x2 = change over the quarter in bond sales by financial institutions

The estimated partial regression coefficients were as follows:

b1 = 0.057 b2 = -0.065

The corrected coefficient of determination was found to be R2 = 0.463. Test the null hypothesis:

H0: β1 = β2 = 0

y = β0 + β1x1 + β2x2 + ε

where

y = change over the quarter in the bond interest rates

x1 = change over the quarter in bond purchases by financial institutions

x2 = change over the quarter in bond sales by financial institutions

The estimated partial regression coefficients were as follows:

b1 = 0.057 b2 = -0.065

The corrected coefficient of determination was found to be R2 = 0.463. Test the null hypothesis:

H0: β1 = β2 = 0

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