EFB222Tutorial8
NOTE: THE 6 STEPS OF HYPOTHESIS TEST ARE ESSENTIAL! THEY DO NOT HAVE
TO BE NUMBERED, BUT THE CONTENTS OF EACH STEP MUST BE STATED IN A
LOGICAL ORDER (THEREFORE THE STEPS ARE A GOOD GUIDE TO FOLLOW.).
EVEN IF THE TEST IS DONE BY CONFIDENCE

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a.
We need the t-critical given the significance level and degrees of freedom. We have a t-distribution with n2 degrees of freedom (that is 16 observations minus 2): df = 14.
Use tables on Blackboard, Learning Resources

EFB222Tutorial10
Question 4.1 (e)-(g)
e. Testing the hypothesis about a single (partial) regression coefficient
f. Testing the hypothesis about two or more partial regression coefficients simultaneously.
g. An R2 value that is adjusted for degrees of free

EFB222 Tutorial 11 (Revised)
QuestionAConsider the model
,
and two data sets: (a) years 1978 1989 (Table 2_9.xls) and (b) years 1990 2007 (Table
2_11.xls). In Tutorial 6 you were asked to plot the scattergrams as well as estimate the models
for the two ti

Lecture 11 Tutorial Solutions
Question 1
Here is an example. Using data from several years of her economics class, a professor
regresses students scores on the final examination Y on their score from the mid
semester examination. The regression will have

EFB222Tutorial9
Question 4.1 (a)-(d)
a. It measures the change in the mean value of the dependent variable (Y) for a unit
change in the value of an explanatory variable (X), holding the values of all other
explanatory variables constant. Mathematically, i

Chow Test for Structural Stability
A series of data can often contain a structural break, due to a change in policy or
sudden shock to the economy, i.e. 1987 stock market crash. In order to test for a
structural break, we often use the Chow test, this is

Multiple Linear Regression
Lecture 10
EFB 222
1 / 35
Outline
t-test
F-test
Examples
2 / 35
t-test
3 / 35
ttest: Test of single coefcient
Is j = ? Or is it not? Is it larger? Or smaller?
j
The test statistic and its distribution are
t=
bj
j
se (bj )
tnk