Some selected output from two models is reported here, where di is a binary (0,1) dummy variable: (1) Full Model: Y i = 1 + 2 X i + 3 d i + 4 (X i d…
Some selected output from two models is reported here, where di is a binary (0,1) dummy variable:
(1) Full Model:
Yi=β1+β2Xi+β3di+β4(Xi × di)+u
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Order Paper NowRSS= 40.61 N=250
(2) Restricted Model: Yi=β1+β2Xi+β4(Xi × di)+u
RSS= 50.25 N=250
The t-statistic for conducting the test H0:β3=0,Ha:β3≠0
is (to 2 decimal places):
-None of the stated options
-1.96
-58.40
-7.64