To study the effect of and on , the model is estimated on a large sample. Estimates are (), (), (). Which of the following is CORRECT?
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2 marks, −0.667EconometricsLinear regression and OLSt-tests, F-tests and testing restrictionsModerateabout 2 min
IIT JAM 2024 Question 18: Linear regression and OLS
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To study the effect of X₁ and X₂ on Y, the model Y = α + β₁ X₁ + β₂ X₂ + ε is estimated on a large sample. Estimates are α=2.30 (se=1.15), β₁=0.39 (se=0.13), β₂=1.80 (se=1.00). Which of the following is CORRECT? (A) α significant at 1%, β₁ at 5%, β₂ at 10% (B) α significant at 1%, β₁ at 10%, β₂ at 5% (C) α significant at 5%, β₁ at 1%, β₂ at 10% (D) α significant at 5%, β₁ at 10%, β₂ at 5%
Also written as: To study the effect of X_1 and X_2 on Y, the model Y = alpha + beta_1 X_1 + beta_2 X_2 + epsilon is estimated on a large sample. Estimates are alpha=2.30 (se=1.15), beta_1=0.39 (se=0.13), beta_2=1.80 (se=1.00). Which of the following is CORRECT?
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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