Assume that the econometric model is as follows Yt = β1 + β2X2t + β3X3t + β4X4t + β5X5t + ut You decide to investigate the relationship of the above econometric model using the null hypothesis of H0: β3 + β4 = 1 and β5 = 1. Derive the restricted regression that can be estimated from the above model The regressions are carried out on a sample of 96 quarterly observations, and the residual sums of squares (RSS) for the restricted and unrestricted regressions are 102.87 and 91.41, respectively. Perform the test. What is your conclusion?
Assume that the econometric model is as follows Yt = β1 + β2X2t + β3X3t + β4X4t + β5X5t + ut You decide to investigate the relationship of the above econometric model using the null hypothesis of H0: β3 + β4 = 1 and β5 = 1. Derive the restricted regression that can be estimated from the above model The regressions are carried out on a sample of 96 quarterly observations, and the residual sums of squares (RSS) for the restricted and unrestricted regressions are 102.87 and 91.41, respectively. Perform the test. What is your conclusion?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Assume that the econometric model is as follows
Yt = β1 + β2X2t + β3X3t + β4X4t + β5X5t + ut
You decide to investigate the relationship of the above econometric model using
the null hypothesis of H0: β3 + β4 = 1 and β5 = 1.
- Derive the restricted regression that can be estimated from the above model
- The regressions are carried out on a sample of 96 quarterly observations, and the residual sums of squares (RSS) for the restricted and unrestricted regressions are 102.87 and 91.41, respectively. Perform the test. What is your conclusion?
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