Consider Model 1, our parsimonious model: LnQx=c+b*LnPx+a1*LnP1+u Also, consider the hypotheses below: 1.) H0: b=0 2.) H0: a1=0 3.) H0: b=a1=0

Question #1

We can rely on t-Stats for testing?

A). The hypotheses that are listed under 2 and 3.

B.). The hypotheses that are listed under 1 and 2.

C.). The hypotheses that are listed under 1 and 3.

D.). The hypothesis listed under number 3.

Question 2

We can rely on F-Stats for testing?

A.) The hypothesis listed under number 3.

B.) The hypotheses that are listed under 1 and 3.

C.) The hypotheses that are listed under 1 and 2.

D.) The hypotheses that are listed under 2 and 3.