la. Show that the F-statistic for testing a single restriction, i.e., when J = 1, is...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
la. Show that the F-statistic for testing a single restriction, i.e., when J = 1, is equal to the square of the t-statistic for testing the same hypothesis. b. Suppose you have the regressions [A] [B] Y₁ = Bo + B₁X₁,i+... BK-1XK-1,i+€, Y₁ = Bo + B₁X₁,i+... 3K-1XK-1,i+BKXKi + €₁. (9.20) Two possible ways of deciding whether or not to include variable XK in the regression is to do a t-test (or an F-test) of the hypothesis K = 0. Another way is to see whether or not the Adjusted-R2 in [B] is greater than the Adjusted-R2 in [A]. Show that the latter method is equivalent to including XK; if the absolute value of the t-statistic for 3 in [B] is greater than 1. la. Show that the F-statistic for testing a single restriction, i.e., when J = 1, is equal to the square of the t-statistic for testing the same hypothesis. b. Suppose you have the regressions [A] [B] Y₁ = Bo + B₁X₁,i+... BK-1XK-1,i+€, Y₁ = Bo + B₁X₁,i+... 3K-1XK-1,i+BKXKi + €₁. (9.20) Two possible ways of deciding whether or not to include variable XK in the regression is to do a t-test (or an F-test) of the hypothesis K = 0. Another way is to see whether or not the Adjusted-R2 in [B] is greater than the Adjusted-R2 in [A]. Show that the latter method is equivalent to including XK; if the absolute value of the t-statistic for 3 in [B] is greater than 1.
Expert Answer:
Answer rating: 100% (QA)
a The Fstatistic for testing a single restriction J 1 is ... View the full answer
Related Book For
Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
Posted Date:
Students also viewed these economics questions
-
A market research firm conducts studies regarding the success of new products. The company is not always perfect in predicting the success. Suppose that there is a 50% chance that any new product...
-
Each of the following quotes is based on the results of an experiment or an observational study. Explain which was used. If an observational study was used, explain whether an experiment could have...
-
The following information is based on the financial statements of Boeing Company for the year ended December 31, 2007. During 2007 Boeing reported revenues of $66,387 million and net expenses...
-
Write a formula for a function g whose graph is similar to f(x) but satisfies the given conditions. Do not simplify the formula. f(x) = 3x 3x + 2 (a) Shifted right 2000 units and upward 70 units (b)...
-
What are the filing statuses available to unmarried taxpayers? Which statuses are available only to married taxpayers?
-
The figure shows a proposed design for the industrial roll shaft of Prob. 74. Hydrodynamic film bearings are to be used. All surfaces are machined except the journals, which are ground and polished....
-
Identify the research scenario, including the general area of focus. Develop a hypothetical research scenario that would necessitate the use of the Mixed Method A-B-A Design. The research will be...
-
A process currently services an average of 50 customers per day. Observations in recent weeks show that its utilization rate, utilization is about 90 percent, allowing for just a 10 percent capacity...
-
1/ You have two different assets (investments). Asset A (perpetuity) will pay you $1,000 in one year, $1,000 in two years, $1,000 in three years, and so on every year forever. Asset B will pay you...
-
The accompanying summary data on CeO2 particle sizes (nm) under certain experimental conditions as read from a graph in the article "Nanoceria-Energetics of Surfaces, Interfaces and Water Adsorption"...
-
Among women voluntarily tested for sexually transmitted diseases in one university, 29.74% tested positive for human papilloma virus (HPV) only, 1.71% tested positive for Chlamydia only, and 3.16%...
-
Go to http://investor.kelloggs.com/annuals.cfm, to access the Kelloggs 2010 Annual Report, and locate the balance sheet. How much has merchandise inventory increased from 2009 to 2010?
-
Describe the three ways that an enterprise system supports the functioning of an organizations processes.
-
What is a logical DFD?
-
Calculate Net Purchases from the following: Purchases, $30; Purchases Returns and Allowances, $4; Purchases Discounts, $1.
-
Explain why it is important to capture the who, what, where, and when in describing business events.
-
The Road agency is planning to build a new bridge and is considering two distinct configurations. The initial costs and annual costs and benefits for each bridge are shown in the following table. The...
-
The Ranch 888 Noodle Company sells two types of dried noodles:ramen, at $6.50 per box, and chow fun, at $7.70 per box. So farthis year, the company has sold a total of 110,096 boxes ofnoodles,...
-
Inferring cash flows From balance sheet and income statement data (Based on a problem prepared by Stephen A. Zeff.) You work for the Plains State Bank in Miles City, Montana, as an analyst...
-
Journal entries for revising estimate of life. Give the journal entries for the following selected transactions of Florida Manufacturing Corporation. The company uses the straight-line method of...
-
Income recognition when collection from the customer is uncertain. Furniture Retailers sells furniture to customers who have relatively poor credit quality, offering extended payment terms. In...
-
The marginal tax rate on a corporate income of \(\$ 87,000\) is closest to which of the following? a. 15 percent b. 20.5 percent c. 25 percent d. 34 percent
-
Calculate the corporate income tax for each of the following corporate taxable incomes. For each, determine the effective (average) tax rate and the marginal tax rate. a. $12,000 b. $65,000 c....
-
True or False: If the same amount of money is invested in something that can be expensed as in something that must be depreciated (and both provide the same annual returns) then you should choose the...
Study smarter with the SolutionInn App