# Consider the multiple regression model with three independent variables, under the classical linear

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Consider the multiple regression model with three independent variables, under the classical linear 1 answer below » Consider the multiple regression model with three independent variables, under the classical linear model assumptions MLR.1 through MLR.6: y = l3 0 + l3 1 x 1 + l3 2 x 2 + l3 3 x 3 + u . You would like to test the null hypothesis H 0 : l3 1 – 3 l3 2 = 1. Let l3 ˆ 1 and l3 ˆ denote the OLS estimators of l3 1 and l3 2 . Find Var( l3 ˆ 1 – 3 l3 ˆ ) in terms of the View complete question » Consider the multiple regression model with three independent variables, under the classical linear model assumptions MLR.1 through MLR.6: y = l3 0 + l3 1 x 1 + l3 2 x 2 + l3 3 x 3 + u . You would like to test the null hypothesis H 0 : l3 1 – 3 l3 2 = 1. Let l3 ˆ 1 and l3 ˆ denote the OLS estimators of l3 1 and l3 2 . Find Var( l3 ˆ 1 – 3 l3 ˆ ) in terms of the variances of l3 ˆ 2 and l3 ˆ and the covariance between 2 1 2 them. What is the standard error of l3 ˆ 1 – 3 l3 ˆ ? Write the t statistic for testing H 0 : l3 1 – 3 l3 2 = 1. 2 Define 0 1 = l3 1 – 3 l3 2 and 0 ˆ = l3 ˆ – 3 l3 ˆ . Write a regression equation 1 1 2 involving l3 0 , 0 1 , l3 2 , and l3 3 that allows you to directly obtain 0 ˆ and its 1 standard error. View less » Sep 05 2015 04:56 PM