Question: (3) Suppose the sum of squared error when regress Q on P only by assuming b0 = 2.5 is 12.5, test the hypothesis of b0

(3) Suppose the sum of squared error when regress Q on P only by assuming b0 = 2.5 is 12.5, test the hypothesis of b0 = 2.5 using an F test. (hint: F=(RSSr -RSSu)/J=(Rb-q)'[R(X'X)-1R']-1(Rb-q)/J) RSSu /(n-K) e'e/(n-K)

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