For the model y = β₀+ β₁x + β₂d₁+ β₃d₂+ ε, which of the following tests is used for testing the joint significance of the dummy variables d₁ and d₂? A) F test B) t test C) chi-square test D) z test

Question

Quizplus · Accepted Answer

When testing the joint significance of multiple coefficients, the F test is the appropriate choice. The F test measures whether or not the model with the additional variables is a better fit than the model without them. The t test is used to test the significance of individual coefficients, while the chi-square test and z test are used for categorical and population mean testing, respectively.

For the Model Y = β0 + β1x + β2d1

For the Model Y = β₀+ β₁x + β₂d₁