Consider the following multiple regression model

Yi=0+1X1i+2X2i+ui

Which of the following describes how to test the null hypotheses that either

1=0

or

2=0?

A.We fail to reject the null hypothesis only if both estimated coefficient,

1

and

2,

are precisely equal to zero.

B.Compute the standard errors, the

t-statistic

and the

p-value

for each,

1

and

2.

Reject the null hypothesis if the

p-value

is less than some relevant significance level.

C.We fail to reject the null hypothesis only if either estimated coefficient,

1

or

2,

is precisely equal to zero.

D.Compute the standard errors, the correlation between

1

and

2,

the

F-statistic,

and the

p-value

associated with the

F-statistic.

Reject the null hypothesis if the

p-value

is less than some relevant significance level.

Which of the following describes how to test the null hypothesis that

1=0

and

2=0?

A.We fail to reject the null hypothesis only if either estimated coefficient,

1

or

2,

is precisely equal to zero.

B.We fail to reject the null hypothesis only if both estimated coefficient,

1

and

2,

are precisely equal to zero.

C.Compute the standard errors, the

t-statistic

and the

p-value

for each,

1

and

2.

Reject the null hypothesis if the

p-value

is less than some relevant significance level.

D.Compute the standard errors, the correlation between

1

and

2,

the

F-statistic,

and the

p-value

associated with the

F-statistic.

Reject the null hypothesis if the

p-value

is less than some relevant significance level.

Suppose you want to test the null hypothesis that

1=0

and

2=0.

Is the result of the joint test implied by the result of the two separate tests?

A.

Yes.

B.

No.