Which of the following statements is true OA Ina resticted regression, the alternative hypothesis is allowed to be true. B. In an unrestricted regression, the null hypothesis is forced to be true. We would reject the null hypothesis if the sum of squared residuals (SSR) from the unrestricted regression is sufficiently smaller than that from the restricted regression We would fall to reject the null hypothesis if the sum of squared residuals (SSR) from the restricted regression is sufficiently smallor than that from the unrestricted regression OD. Astatistics student wants to study the factors which affected the sale of Ben & Jerry's ice creams (S) across the world on last year's National lce Cream Day. He selects three factors the average price of the ice creams sold in that region (P), the average temperature on that day in that reglon (). and the regional expenditure on advertising their ice cream in the week leading to that day (E) For his study. he selecta a random sample of 110 storen and estimates the following regression function 33.75-0.57P 0.65T+0.76E, R -0.42 By imposing restrictions on the true coefficients, the student wishes to test the null hypothesis that the coetficients on Tand E are jointly 0 against the altomative that atleast one of them io not equal to 0, while controlling for the other variables So the restricted regression equation is 3*3.75-057P. R0 39 The homoskedasticty only F-statistic value associated with the above test is

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4
Which of the tollowing statorments is true?
A. In a restricted regression, the alternative hypothesis is allowed to be true.
B. In an unrestricted regression, the null hypothesis is forced to be true
We would reject the null hypothesis if the sum of squared residuals (SSR) from the unrestricted regression is suficiently smaller than that from the
restricted regression
We would fal to reject the null bypothesis if the sum of squared residuals (SSR) from the restricted regression is sulflciently smaller than that from the
unrestricted regression
D.
Astatistics student wants to study the factors which affected the sale of Ben & Jerry's ice creams (S) acroas the world on last year's National Ice Cream Day. He
selects three factors the average price of the ice creams sold in that region (P), the average temperature on that day in that region (T), and the regional
expenditure on advertising their ice cream in the week leading to that day (E) For his study. he selecta a random sample of 110 stores and estimates the
following regression function
Ŝ=3.75 -0.57P+0.65T+0.75E, R =0.42
By imposing restrictions on the true coefficients, the student wishes to test the null hypothesis that the coefficients on Tand,
that atleast one of them is not equal to 0, while controlling for the other variables
are Jointly 0 against the altomative
So, the restricted regression equation is
3-3.75-0.57P, R 0 39
The homoskedasticty only Fstatistic value associated with the above test is
Transcribed Image Text:Which of the tollowing statorments is true? A. In a restricted regression, the alternative hypothesis is allowed to be true. B. In an unrestricted regression, the null hypothesis is forced to be true We would reject the null hypothesis if the sum of squared residuals (SSR) from the unrestricted regression is suficiently smaller than that from the restricted regression We would fal to reject the null bypothesis if the sum of squared residuals (SSR) from the restricted regression is sulflciently smaller than that from the unrestricted regression D. Astatistics student wants to study the factors which affected the sale of Ben & Jerry's ice creams (S) acroas the world on last year's National Ice Cream Day. He selects three factors the average price of the ice creams sold in that region (P), the average temperature on that day in that region (T), and the regional expenditure on advertising their ice cream in the week leading to that day (E) For his study. he selecta a random sample of 110 stores and estimates the following regression function Ŝ=3.75 -0.57P+0.65T+0.75E, R =0.42 By imposing restrictions on the true coefficients, the student wishes to test the null hypothesis that the coefficients on Tand, that atleast one of them is not equal to 0, while controlling for the other variables are Jointly 0 against the altomative So, the restricted regression equation is 3-3.75-0.57P, R 0 39 The homoskedasticty only Fstatistic value associated with the above test is
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