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The researcher runs an OLS regression with five regressors and a constant on a sample of 453 observations. The value of R for this regression
The researcher runs an OLS regression with five regressors and a constant on a sample of 453 observations. The value of R for this regression is 0.4871. Subsequently she imposes two restrictions on the coefficients and runs a corresponding restricted regression. The value of R2 is now 0.4703. Assuming that errors are homoskedastic, compute the F statistic for the test of joint validity of the two restrictions. Is the null hypothesis rejected? Based on your conclusion, are the two restrictions jointly valid
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