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How test statistic can be computed from two regressions

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Reference no: EM13140673

yi = ß1xi1 +ß2xi2 +ß3xi3 +ß4xi4 + ei

For the hypothesis H0 : ß2=1, ß3= ß4

(a) propose a test statistic (with specific, rather than general, notation.)

(b) state what is its distribution under the null and why

(c) explain the conditions under which you would reject H0

(d) show how your test statistic can be computed from two regressions.

Reference no: EM13140673

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