Consider the following multiple regression model
Upper Y Subscript i equals beta 0 plus beta 1 Upper X Subscript 1 i Baseline plus beta 2 Upper X Subscript 2 i Baseline plus u Subscript iYi=?0+?1X1i+?2X2i+ui
Which of the following describes how to test the null hypotheses that either beta 1 equals 0?1=0 or beta 2 equals 0?2=0??
A. Compute the standard? errors, the t?-statistic and the p?-value for? each, beta 1?1 and beta 2?2. Reject the null hypothesis if the p?-value is less than some relevant significance level.
B. We fail to reject the null hypothesis only if either estimated? coefficient, ModifyingAbove beta with caret 1?1 or ModifyingAbove beta with caret 2?2?, is precisely equal to zero.
C. Compute the standard? errors, the correlation between beta 1?1 and beta 2?2?, the F?-statistic, and the p?-value associated with the F?-statistic. Reject the null hypothesis if the p?-value is less than some relevantsignificance level.
D. We fail to reject the null hypothesis only if both estimated? coefficient, ModifyingAbove beta with caret (1?1) and ModifyingAbove beta with caret (2?2)?, are precisely equal to zero.
