Please do not give solution in image formate thanku. 4. Suppose that you have time series data on consumption and on personal income for the period1929 through 1970.(a) Write out the equation you would estimate to test the null hypothesis that the intercept of theconsumption function fell during the Second World War. State the null and alternativehypotheses. What statistical test would you perform? What would be the test statistic? Whatwould be the rejection region for the test, assuming the probability of a Type I error = 0.05?(b) Write out the equation you would estimate to test the null hypothesis that the slope and theintercept of the consumption function did not change during the Second World War. What isthe wartime intercept? The wartime slope?(c) State the null and alternative hypotheses for part (b). What statistical test would youperform? What would be the test statistic? What would be the rejection region for the test,assuming the probability of a Type I error = 0.05?

(a) To test the null hypothesis that the intercept of the consumption function fell during the…

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Calculus For The Life Sciences

2nd Edition

ISBN:9780321964038

Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Chapter2: Exponential, Logarithmic, And Trigonometric Functions

Section2.CR: Chapter 2 Review

Problem 111CR: Respiratory Rate Researchers have found that the 95 th percentile the value at which 95% of the data...

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Question

Please do not give solution in image formate thanku.

4. Suppose that you have time series data on consumption and on personal income for the period
1929 through 1970.
(a) Write out the equation you would estimate to test the null hypothesis that the intercept of the
consumption function fell during the Second World War. State the null and alternative
hypotheses. What statistical test would you perform? What would be the test statistic? What
would be the rejection region for the test, assuming the probability of a Type I error = 0.05?
(b) Write out the equation you would estimate to test the null hypothesis that the slope and the
intercept of the consumption function did not change during the Second World War. What is
the wartime intercept? The wartime slope?
(c) State the null and alternative hypotheses for part (b). What statistical test would you
perform? What would be the test statistic? What would be the rejection region for the test,
assuming the probability of a Type I error = 0.05?

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