{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

test3ans-3u03-2011w

# test3ans-3u03-2011w - ECON 3U03 Test 3 Instructor Shintaro...

This preview shows pages 1–2. Sign up to view the full content.

ECON 3U03: Test 3 Instructor: Shintaro Yamaguchi March 29, 2011 1. Testing signiﬁcance of model by F-test. (a) H 0 : β 2 = β 3 = 0. (5 marks) No partial credit. (b) H 1 : β 2 6 = 0, β 3 6 = 0, or both. (5 marks) No partial credit, even if it is consistent with a wrong H 0 . (c) SSE R , the SSE for the restricted model, is SSE R = 6 . 49 2 * ( 75 - 1 ) = 3116 . 8874 (4 marks). The test statistic is F = ( 3116 . 8874 - 1718 . 94 ) / 2 1718 . 94 / ( 75 - 3 ) = 698 . 9737 23 . 8741 = 29 . 2774 (3 marks). This follows F-distribution with (2, 72) degrees of freedom (3 marks). No other partial credit. (d) The closest critical value in the table is F 2 , 60 = 3 . 15 (3 marks). Because this is smaller than the test statistic, the null hypothesis is rejected (2 marks). If the conclusion is consistent with wrong test statistic and/or critical value, the last 2 marks may be awarded. No other partial credit. 2. F-test

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 3

test3ans-3u03-2011w - ECON 3U03 Test 3 Instructor Shintaro...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online