Question: Answered ect Answer Consider the regression model Y = b0 + b1 X1 + b2 X2 + u. Suppose you want to test the
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.
Step by Step Solution
3.46 Rating (162 Votes )
There are 3 Steps involved in it
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 full answer
Get step-by-step solutions from verified subject matter experts
