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Question3. Consider the single random factor model. Derive the test to evaluate the hypothesis Ho: 6- =0 versus the alternate Hi: of #0. Giving explanations

Question3. Consider the single random factor model. Derive the test to evaluate the hypothesis Ho: 6- =0 versus the alternate Hi: of #0. Giving explanations for how the test distribution under the null hypothesis was derived. (20 points)

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