Question: Derive the test for model (9.0.1) versus the reduced model Y = X(3 + Zo'Yo + e, where C(Zo) c C(Z). Describe how the procedure

Derive the test for model (9.0.1) versus the reduced model Y = X(3 + Zo'Yo +

e, where C(Zo) c C(Z). Describe how the procedure would work for testing Ho : 'Y2 = 0 in the model Yij = Jl. + Q!i + 1}j +

'Y1Zijl + 'Y2Zij2 + eij, i = 1, ... ,

a, j = 1, ... , b.

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