A researcher wants to study the factors which affected the sales of cars by different manufacturers in the automobile industry across the world in the year 2017. Generally, the sales of cars (S, measured in thousands) depend on the average price of the cars sold by the manufacturer (P, measured in thousand dollars), the average interest rate at which car loans were offered in that country in that year (I, expressed as a percentage), and the manufacturers' total expenditure on the advertisement of their cars (E, measured in thousand dollars). She selects a random sample of 150 car manufacturers and estimates the following regression function: S=245.73-0.75/-0.23P+0.75E, By imposing restrictions on the true coefficients, the researcher wishes to test the null hypothesis that the coefficients on and E are jointly 0, against the alternative that atleast one of them is not equal to 0, while controlling for the other variables. The values of the sum of squared residuals (SSR) from the unrestricted and restricted regressions are 35.25 and 40.75, respectively. The homoskedasticity-only F-statistic value associated with the above test will be (Round your answer to two decimal places.) At the 1% significance level, the researcher will the joint null hypothesis.
A researcher wants to study the factors which affected the sales of cars by different manufacturers in the automobile industry across the world in the year 2017. Generally, the sales of cars (S, measured in thousands) depend on the average price of the cars sold by the manufacturer (P, measured in thousand dollars), the average interest rate at which car loans were offered in that country in that year (I, expressed as a percentage), and the manufacturers' total expenditure on the advertisement of their cars (E, measured in thousand dollars). She selects a random sample of 150 car manufacturers and estimates the following regression function: S=245.73-0.75/-0.23P+0.75E, By imposing restrictions on the true coefficients, the researcher wishes to test the null hypothesis that the coefficients on and E are jointly 0, against the alternative that atleast one of them is not equal to 0, while controlling for the other variables. The values of the sum of squared residuals (SSR) from the unrestricted and restricted regressions are 35.25 and 40.75, respectively. The homoskedasticity-only F-statistic value associated with the above test will be (Round your answer to two decimal places.) At the 1% significance level, the researcher will the joint null hypothesis.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
PLEASE GIVE ME THE CORRECT ANSWER NO ERROR MAKE SURE THE ANSWER IS RIGHT
A researcher wants to study the factors which affected the sales of cars by different manufacturers in the automobile industry across the world in the year 2017. Generally, the sales of cars
(Upper SS,
measured in thousands) depend on the average price of the cars sold by the manufacturer
(Upper PP,
measured in thousand dollars), the average interest rate at which car loans were offered in that country in that year
(Upper II,
expressed as a percentage), and the manufacturers' total expenditure on the advertisement of their cars
(Upper EE,
measured in thousand dollars). She selects a random sample of
150150
car manufacturers and estimates the following regression function:ModifyingAbove Upper S with caret equals 245.73 minus 0.75 Upper I minus 0.23 Upper P plus 0.75 Upper ES=245.73−0.75I−0.23P+0.75E,
By imposing restrictions on the true coefficients, the researcher wishes to test the null hypothesis that the coefficients on
Upper II
and
Upper EE
are jointly 0, against the alternative that atleast one of them is not equal to 0, while controlling for the other variables.The values of the sum of squared residuals
(SSR)
from the unrestricted and restricted regressions are
35.2535.25
and
40.7540.75,
respectively.The homoskedasticity-only
F-statistic
value associated with the above test will be
enter your response here.
(Round
your answer to two decimal
places.)
Part 3
At the 1% significance level, the researcher will
the joint null hypothesis.
▼
reject
fail to reject
Transcribed Image Text:A researcher wants to study the factors which affected the sales of cars by different manufacturers in the automobile industry across the world in the year 2017. Generally, the sales of cars (S,
measured in thousands) depend on the average price of the cars sold by the manufacturer (P, measured in thousand dollars), the average interest rate at which car loans were offered in that country
in that year (I, expressed as a percentage), and the manufacturers' total expenditure on the advertisement of their cars (E, measured in thousand dollars). She selects a random sample of 150 car
manufacturers and estimates the following regression function:
S=245.73-0.75/-0.23P+0.75E,
By imposing restrictions on the true coefficients, the researcher wishes to test the null hypothesis that the coefficients on and E are jointly 0, against the alternative that atleast one of them is not
equal to 0, while controlling for the other variables.
The values of the sum of squared residuals (SSR) from the unrestricted and restricted regressions are 35.25 and 40.75, respectively.
The homoskedasticity-only F-statistic value associated with the above test will be
(Round your answer to two decimal places.)
At the 1% significance level, the researcher will
the joint null hypothesis.
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