You decide to investigate the relationship given in the null hypothesis of question 2, part (c). What
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You decide to investigate the relationship given in the null hypothesis of question 2, part (c). What would constitute the restricted regression?
The regressions are carried out on a sample of 96 quarterly observations, and the residual sums of squares for the restricted and unrestricted regressions are 102.87 and 91.41, respectively. Perform the test. What is your conclusion?
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