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(iv) For testing hypotheses: Ho: Bi = 0 H₁: B 0, for i = 1, 2, 3, 4. find t-statistics. Then on paper show how to use them to make conclusions (do not use p-values). If for some i (i = 1, 2, 3, 4) you do not reject Ho, remove the corresponding variables from consideration. Run regression again. State the new model. Compare the models.

(iv) For testing hypotheses: Ho: Bi = 0 H₁: B 0, for i = 1, 2, 3, 4. find t-statistics. Then on paper show how to use them to make conclusions (do not use p-values). If for some i (i = 1, 2, 3, 4) you do not reject Ho, remove the corresponding variables from consideration. Run regression again. State the new model. Compare the models.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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(iv) For testing hypotheses: Ho: Bi = 0 H₁: B 0, for i = 1, 2, 3, 4. find t-statistics. Then on paper show how to use them to make conclusions (do not use p-values). If for some i (i = 1, 2, 3, 4) you do not reject Ho, remove the corresponding variables from consideration. Run regression again. State the new model. Compare the models.
Transcribed Image Text:(iv) For testing hypotheses: Ho: Bi = 0 H₁: B 0, for i = 1, 2, 3, 4. find t-statistics. Then on paper show how to use them to make conclusions (do not use p-values). If for some i (i = 1, 2, 3, 4) you do not reject Ho, remove the corresponding variables from consideration. Run regression again. State the new model. Compare the models.
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