Question: 1. Consider the following regression: y. = B1 + B2x 2 + Byx3+ + BAX At + U. You want to test H_0: B2=-B3. a.

1. Consider the following regression: y. = B1 + B2x 2

1. Consider the following regression: y. = B1 + B2x 2 + Byx3+ + BAX At + U. You want to test H_0: B2=-B3. a. You should run the restricted regression y, = P, + 2(X21 -X3: ) + PAXAt + u b. You should compute (RRSS-URSS)/URSS*(T-4) /1 C. You should get your critical value from an F(1,T-4) distribution

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