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Q3: F Test of Overall Significance Use the House data. Please run a multiple regression rprice = Bo + Bubaths + B2age + u. Consider

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Q3: F Test of Overall Significance Use the House data. Please run a multiple regression rprice = Bo + Bubaths + B2age + u. Consider testing the joint null hypothesis Ho : B1 = 0,32 = 0 1. Please run the restricted regression and obtain RSSrestricted 2. Please compute the F-statistic and find the p-value using stata function Ftail . reg rprice baths area age Source SS df MS 321 3 Model Residual 2.0661e+11 1.4438e+11 6.8870e+10 455472317 Number of obs F(3, 317) Prob > F R-squared Adj R-squared Root MSE 317 = 151.20 0.0000 0.5886 0.5847 21342 Total 3.5099e+11 320 1.0969e+09 rprice Coef. Std. Err. t P>t| (95% Conf. Interval] baths area 13641.6 21.5844 -201.3679 9959.986 2298.853 2.383401 40.77 4484.126 5.93 9.06 -4.94 2.22 0.000 0.000 0.000 0.027 9118.662 16.89512 -281.5819 1137.576 18164.54 26.27368 -121.1539 18782.4 age _cons test baths area baths = 0 (1) (2) area = 0 FC 2, 317) = Prob > F = 184.37 0.0000 qui reg rprice age . dis "RSS of restricted regression is "e(rss) RSS of restricted regression is 3.123e+11 dis "F test is " ((e(rss)-1.4438e+11)/2)/(1.4438e+11/(321-3-1)) F test is 184.38396 Q3: F Test of Overall Significance Use the House data. Please run a multiple regression rprice = Bo + Bubaths + B2age + u. Consider testing the joint null hypothesis Ho : B1 = 0,32 = 0 1. Please run the restricted regression and obtain RSSrestricted 2. Please compute the F-statistic and find the p-value using stata function Ftail . reg rprice baths area age Source SS df MS 321 3 Model Residual 2.0661e+11 1.4438e+11 6.8870e+10 455472317 Number of obs F(3, 317) Prob > F R-squared Adj R-squared Root MSE 317 = 151.20 0.0000 0.5886 0.5847 21342 Total 3.5099e+11 320 1.0969e+09 rprice Coef. Std. Err. t P>t| (95% Conf. Interval] baths area 13641.6 21.5844 -201.3679 9959.986 2298.853 2.383401 40.77 4484.126 5.93 9.06 -4.94 2.22 0.000 0.000 0.000 0.027 9118.662 16.89512 -281.5819 1137.576 18164.54 26.27368 -121.1539 18782.4 age _cons test baths area baths = 0 (1) (2) area = 0 FC 2, 317) = Prob > F = 184.37 0.0000 qui reg rprice age . dis "RSS of restricted regression is "e(rss) RSS of restricted regression is 3.123e+11 dis "F test is " ((e(rss)-1.4438e+11)/2)/(1.4438e+11/(321-3-1)) F test is 184.38396

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