Econ122A+Sample+Final+Exam+-+Solutions

# It is possible for neither 1 or 2 to be individually

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Unformatted text preview: gnificant estimate for β . b) Using weekly rather than daily number of cigarettes smoked will ˆ lead to a larger variance of β . c) Using weekly rather than daily number of cigarettes smoked will ˆ lead to a smaller variance of β . d) None of the above. Answer: C Using weekly rather than daily number of cigarettes smoked will make both estimated slope and the variance of it smaller, but will keep the t statistic unchanged. 7. Consider the following multiple regression model, Y = α + β1 X1 + β2 X 2 + β3 X 3 + u. You would like to test the null hypothesis H0 : β1 = 0 and β2 = 0. Which of the following is correct? a) Conduct two separate t tests. If neither of them is significant, decide that you fail to reject H0. 3 b) Conduct two separate t tests. If at leas...
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