Assume that we estimated the following model by OLS: y =β₁ + β₂x + u. The sample size of the data is n=62. We calculated that the standard errors for β₁ and β₂ are se(β₁)=1 and se(β₂)=2. Also, the estimates for β₁ and β₂ are β₁=3 and β₂=5. We want to test: H₀ : β₂=0 H₁ : β₂≠0. for α=0.05 significance level. What is the t statistic? [We denote the estimates by bold font]
Assume that we estimated the following model by OLS: y =β₁ + β₂x + u. The sample size of the data is n=62. We calculated that the standard errors for β₁ and β₂ are se(β₁)=1 and se(β₂)=2. Also, the estimates for β₁ and β₂ are β₁=3 and β₂=5. We want to test: H₀ : β₂=0 H₁ : β₂≠0. for α=0.05 significance level. What is the t statistic? [We denote the estimates by bold font]
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Question
Assume that we estimated the following model by OLS:
y =β₁ + β₂x + u.
The
H₀ : β₂=0
H₁ : β₂≠0.
for α=0.05 significance level. What is the t statistic? [We denote the estimates by bold font]
Expert Solution
Step 1: Determining the given information
The standard error for 
is 2 and the estimate for is 5.
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