Answered ect Answer Consider the regression model Y = b0 + b1 X1 + b2 X2...

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Answered ect Answer Consider the regression model Y = b0 + b1 X1 + b2 X2 + u. Suppose you want to test the null hypothesis HO: 2 b1 = b2, versus the alternative hypothesis H1: 2 b1!=b2 (!= means "not equal to"). Suppose you conduct the test using a transformed regression. Which of the following is correct about the transformed regression? Regress Y on (X1+X2): test whether the coefficient on (X1+X2) is zero. Regress Y on X1 and (X1 + 2 X2); test whether the coefficient on (X1 + 2 X2) is zero. Regress Y on (X1+2 X2); test whether the coefficient on (X1 + 2 X2) is zero. Regress Y on X2 and (X1 + 2 X2): test whether the coefficient on X2 is zero. Answered ect Answer Consider the regression model Y = b0 + b1 X1 + b2 X2 + u. Suppose you want to test the null hypothesis HO: 2 b1 = b2, versus the alternative hypothesis H1: 2 b1!=b2 (!= means "not equal to"). Suppose you conduct the test using a transformed regression. Which of the following is correct about the transformed regression? Regress Y on (X1+X2): test whether the coefficient on (X1+X2) is zero. Regress Y on X1 and (X1 + 2 X2); test whether the coefficient on (X1 + 2 X2) is zero. Regress Y on (X1+2 X2); test whether the coefficient on (X1 + 2 X2) is zero. Regress Y on X2 and (X1 + 2 X2): test whether the coefficient on X2 is zero.

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The detailed answer for the above question is provided below SOLUTION To test the null hypothesis HO 2 b1 b2 versus the alternative hypothesis H1 2 b1 ... View the full answer