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Assume that we estimated the following model by OLS: y -B + B.x + U. The sample size of the data is n-62. We calculated
Assume that we estimated the following model by OLS: y -B + B.x + U. The sample size of the data is n-62. We calculated that the standard errors for p, and (, are seip )=] and setp )-2. Also, the estimates for A, and D, are p. 3 and P.-5. We want to test; H :B -2 H. : B. >2. for a=0.05 significance level. What is the outcome of the test? [We denote the estimates by bold font] O a. The critical value is 1.96; t statistic is 1; we fail to reject the null hypothesis. O b. The critical value is 1.671; t statistic is 1; we reject the null hypothesis. " The critical value is 1.671; t statistic is 1; we fail to reject the null hypothesis O'd. The critical value is 1.96; t statistic is 1, we reject the null hypothesis
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