answer both questions with explanation

Consider the simplied classical normal linear regression problem written in matrix notation (as in Chapter 3 of Davidson and MacKinnon): y=X3+u, u~m(0,021n), teen" cr>0, (3) where y is an n-vector of endogenous variables. and X is a n X 1: matrix of regressors. 1. Suppose you wish to test the null hypothesis H0 : 51 = 0 What is the model of the null hypothesis 5' Le. 710. Is it composite or simple '3 Provide examples of DGPs in this null model. Furthermore. what is the alternative hypothesis. ? Propose a size or test for this null hypothesis. Explain your answers. 2. Suppose you now wish to test the null hypothesis Ho : f! 2 g where u is a specic value of [3 . What is the model of the null hypothesis ? Propose a size a test for this null hypothesis and a condence set for the parameter ,8 based on this test. Explain your answers