You have estimated a model with 7 independent variables and N=32 observations. The sumof squared residuals...
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You have estimated a model with 7 independent variables and N=32 observations. The sumof squared residuals for this model is SSR2000. Three of the estimated slope coefficients are not significantly different from zero based on a ttest. You decide to test the null hypothesis that the three coefficients are simultaneously equal to zero. For your restricted model you obtain SSR2600. What is the appropriate test to use? What is the critical value of the appropriate test statistic given a 5% significance level? What is the calculated test statistics? Do you reject or not reject the null hypothesis? You have estimated a model with 7 independent variables and N=32 observations. The sumof squared residuals for this model is SSR2000. Three of the estimated slope coefficients are not significantly different from zero based on a ttest. You decide to test the null hypothesis that the three coefficients are simultaneously equal to zero. For your restricted model you obtain SSR2600. What is the appropriate test to use? What is the critical value of the appropriate test statistic given a 5% significance level? What is the calculated test statistics? Do you reject or not reject the null hypothesis?
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The appropriate test to use is the Ftest for joint significance This test is used to test the null h... View the full answer
Related Book For
Accounting concepts and applications
ISBN: 9780538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Posted Date:
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