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Questions › DSE › DSE 2018 › Q15
4 marks, −1Econometrics › Linear regression and OLS › t-tests, F-tests and testing restrictionsModerateabout 2 min

DSE 2018 Question 15: Linear regression and OLS

In a multiple regression model with three right-hand-side variables and 105105105 observations estimated by OLS, the researcher must decide whether to include a fourth right-hand-side variable. The residual sum of squares is 250250250 with four variables and 300300300 with three variables. Critical values of the FFF-table (α=0.05\alpha = 0.05α=0.05) are F(1,100)=3.89F(1,100) = 3.89F(1,100)=3.89, F(2,100)=3.09F(2,100) = 3.09F(2,100)=3.09, F(3,100)=2.70F(3,100) = 2.70F(3,100)=2.70, F(4,100)=2.46F(4,100) = 2.46F(4,100)=2.46, F(5,100)=2.31F(5,100) = 2.31F(5,100)=2.31. This means when the fourth variable is included, the fit of the regression

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In a multiple regression model with three right-hand-side variables and 105 observations estimated by OLS, the researcher must decide whether to include a fourth right-hand-side variable. The residual sum of squares is 250 with four variables and 300 with three variables. Critical values of the F -table (α = 0.05) are F(1,100) = 3.89, F(2,100) = 3.09, F(3,100) = 2.70, F(4,100) = 2.46, F(5,100) = 2.31. This means when the fourth variable is included, the fit of the regression (A) there is insufficient information to make a determination about fit (B) worsens significantly (C) has no significant change (D) improves significantly

Also written as: In a multiple regression model with three right-hand-side variables and 105 observations estimated by OLS, the researcher must decide whether to include a fourth right-hand-side variable. The residual sum of squares is 250 with four variables and 300 with three variables. Critical values of the F -table (alpha = 0.05) are F(1,100) = 3.89, F(2,100) = 3.09, F(3,100) = 2.70, F(4,100) = 2.46, F(5,100) = 2.31. This means when the fourth variable is included, the fit of the regression

Linear regression and OLS has come up 74 times in 7 exams since 2008.

What this question tests

This question is on t-tests, F-tests and testing restrictions, part of Linear regression and OLS in Econometrics.

Testing a single coefficient, several coefficients, or a linear restriction.

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