Question: (25 points) When using N = 50 observations to estimate the model yi = 81+ 82x; + B3zi + ei, you obtain SSE = 2132.65

 (25 points) When using N = 50 observations to estimate the

(25 points) When using N = 50 observations to estimate the model yi = 81+ 82x; + B3zi + ei, you obtain SSE = 2132.65 and sy = 9.8355. a. Find R2. b. Find the value of the F-statistic for testing H0: [3 2 = 0, [33 = 0. Do you reject or fail to reject H0 at a 1% level of significance? c. After augmenting this model with the squares and cubes of predictions, y2 and y3, you obtain SSE = 1072.88. Use RESET to test for misspecification at a 1% level of significance. d. After estimating the model y i = B 1 + B 2 x i + B 3 2 i + B 4 2 2 i + e i, you obtain SSE = 401.179. What is the R2 from estimating this model? e. After augmenting the model in (d) with the squares and cubes of predictions, y2 and y3, you obtain SSE = 388.684. Use RESET to test for misspecification at a 5% level of significance

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