Assume that we estimated the following model by OLS: y =β₁ + β₂x + u. The sample size of the data is n=62. We calculated that the standard errors for β₁ and β₂ are se(β₁)=1 and se(β₂)=2. Also, the estimates for β₁ and β₂ are β₁=3 and β₂=5. We want to test: H₀ : β₁ =4 H₁ : β₁ >4. for α=0.05 significance level. What is the t statistic? [We denote the estimates by bold font] a. 2 b. -1 c. 1 d. -2
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We have the null hypothesis H₀: β₁ = 4 and the alternative hypothesis H₁: β₁ > 4. Show more…
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