Question: 1. Consider the following regression: y. = B1 + B2x2 + Bgx 3+ + BAX At + U. You want to test H_0: P,=-B3. a.

1. Consider the following regression: y. = B1 + B2x2 +

1. Consider the following regression: y. = B1 + B2x2 + Bgx 3+ + BAX At + U. You want to test H_0: P,=-B3. a. You should run the restricted regression y, = B + P,(X,, -x3 ) + Pax, + u b. You should compute (RRSS-URSS)/URSS*(T-4) /1 C. You should get your critical value from an F(1, 7-4) distribution

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