Question: Can u help me solve this question? 1. (20 points, 10 each) Suppose we have data (1211-, 0321-, K) for i = 1, 2, .
Can u help me solve this question?

1. (20 points, 10 each) Suppose we have data (1211-, 0321-, K) for i = 1, 2, . . . , n with n = 100 and we t a multiple linear regression model Y; = a + blam + b2$2i + 6i, where 61' N N (0, a2) satises assumptions of the multiple linear regression model, and a is unknown. (a) Describe how to test the hypothesis H0 : ()2 = 0 where the alternative hypothesis is H1 : b2 a 0. Consider the level of signicance 5%. Give details including the procedure, test statistics and rejection rules. (b) Describe how to test the hypothesis H0 : bl 2 ()2 = 0 where the alternative hypothesis is H1: not all of ()1, ()2 equal 0. Consider the level of signicance 1%. Give details including the procedure, test statistics and rejection rules
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