Consider the following regression model: Y; = Bo + B1X1i + B2X2¡ + B3X3¡ + B4X4¡ + Ui We want to test the following null hypothesis: Họ: ß3+ß4 = 0 vs. H1: B3+ß4 # 0 The initial regression, so that the null hypothesis can be tested using the t-statistic m (testing a restriction on a single regression coefficient), can be rewritten using the fo form:

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10.
Consider the following regression model:
Y; = Bo + B1X1i + B2X2i + B3X3¡ + B4X4¡ + Ui
We want to test the following null hypothesis:
Họ: ß3+B4 = 0
vs. H1: B3+B4 # 0
%3D
The initial regression, so that the null hypothesis can be tested using the t-statistic method
(testing a restriction on a single regression coefficient), can be rewritten using the following
form:
Y; = Bo + B1X11 + B2X2¡ + Y1X3¡ + B4W; + u;
where W; can be calculated from the data.
Here, yı.
-Вз + Ba. Here, W,
X3i + X4i.
A)
+, =
=, =
=, +
Transcribed Image Text:10. Consider the following regression model: Y; = Bo + B1X1i + B2X2i + B3X3¡ + B4X4¡ + Ui We want to test the following null hypothesis: Họ: ß3+B4 = 0 vs. H1: B3+B4 # 0 %3D The initial regression, so that the null hypothesis can be tested using the t-statistic method (testing a restriction on a single regression coefficient), can be rewritten using the following form: Y; = Bo + B1X11 + B2X2¡ + Y1X3¡ + B4W; + u; where W; can be calculated from the data. Here, yı. -Вз + Ba. Here, W, X3i + X4i. A) +, = =, = =, +
Expert Solution
Step 1

From the given information,

The regression model is,

Statistics homework question answer, step 1, image 1

And

H0:β3+β4=0 vs H1:β3+β40

The regression equation is rewritten as

Yi=β0+β1X1i+β2X2i+γ1X3i+β4Wi+ui........(1)

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