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Consider the following model: y, = Bo + B2X10 + B2X2 + B3X3t + B4X44 + uu, a) You decide to test the hypothesis H,

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Consider the following model: y, = Bo + B2X10 + B2X2 + B3X3t + B4X44 + uu, a) You decide to test the hypothesis H, : B1 = 2 and 33 + B4 = = 1 and you know that the regression is carried out on a sample of 205 observations. The residual sum of squares for the unrestricted model is 159.31 and the RSS for the restricted model is 168.45. Write down the alternative hypothesis. Perform the test at 5% significance level. What is your conclusion? (You can find the statistical tables in appendix A at the end of the exam paper.) [14 marks] F-test be b) You decide to test the following null hypothesis Ho:B used? Explain your answer. [6 marks] ources eHerdere Consider the following model: y, = Bo + B2X10 + B2X2 + B3X3t + B4X44 + uu, a) You decide to test the hypothesis H, : B1 = 2 and 33 + B4 = = 1 and you know that the regression is carried out on a sample of 205 observations. The residual sum of squares for the unrestricted model is 159.31 and the RSS for the restricted model is 168.45. Write down the alternative hypothesis. Perform the test at 5% significance level. What is your conclusion? (You can find the statistical tables in appendix A at the end of the exam paper.) [14 marks] F-test be b) You decide to test the following null hypothesis Ho:B used? Explain your answer. [6 marks] ources eHerdere

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