Question: Continue with Exercise 13.25. Using the J test, how would you decide between the two models? Data from 13.25 Refer to Exercise 8.26. With the

Continue with Exercise 13.25. Using the J test, how would you decide between the two models?


Data from 13.25

Refer to Exercise 8.26. With the definitions of the variables given there, consider the following two models to explain Y:

Model A: Yt = α1 + α2X3t + α3X4t + α4X6t + ut

Model B: Yt = β1 + β2X2t + β3X5t + β4X6t + ut

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