Question: 12.87 A dependent variable is regressed on two independent variables. It is possible that the hypotheses H0 : b1 = 0 and H0 : b2

12.87 A dependent variable is regressed on two independent variables. It is possible that the hypotheses H0 : b1 = 0 and H0 : b2 = 0 cannot be rejected at low significance levels, yet the hypothesis H0 : b1 = b2 = 0 can be rejected at a very low significance level. In what circumstances might this result arise?

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