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Questions › JNU › JNU SIS 2021 › Q2
0 marksEconometrics › Linear regression and OLS › t-tests, F-tests and testing restrictionsModerateabout 2 min

JNU SIS 2021 Question 2: Linear regression and OLS

Consider the following regression equation: yi=α+β1x1i+β2x2i+β3x3i+uiy_i = \alpha + \beta_1 x_{1i} + \beta_2 x_{2i} + \beta_3 x_{3i} + u_iyi​=α+β1​x1i​+β2​x2i​+β3​x3i​+ui​. Which one of the following would be a possible restricted regression for a test of the null hypothesis H0:β1+β2=1H_0 : \beta_1 + \beta_2 = 1H0​:β1​+β2​=1 ?

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Consider the following regression equation: yᵢ = α + β₁ x₁ᵢ + β₂ x₂ᵢ + β₃ x₃ᵢ + uᵢ. Which one of the following would be a possible restricted regression for a test of the null hypothesis H₀: β₁ + β₂ = 1? (A) yᵢ = α + β₁ x₁ᵢ + β₂ x₂ᵢ + β₃ x₃ᵢ + uᵢ (B) yᵢ = α + β₂(x₂ᵢ - x₁ᵢ) + β₃ x₃ᵢ + uᵢ (C) (yᵢ - x₁ᵢ) = α + β₂(x₂ᵢ - x₁ᵢ) + β₃ x₃ᵢ + uᵢ (D) (yᵢ - x₁ᵢ) = α + β₂ x₂ᵢ + β₃ x₃ᵢ + uᵢ

Also written as: Consider the following regression equation: y_i = alpha + beta_1 x_(1i) + beta_2 x_(2i) + beta_3 x_(3i) + u_i. Which one of the following would be a possible restricted regression for a test of the null hypothesis H_0: beta_1 + beta_2 = 1?

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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