If we run the regression Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ + β₄X₄ + ε using a sample of 30 observations,what is the alternative hypothesis for the F-test of overall significance? A)H₁ : at least one β_j≠0 B)H₁ : β₁= β₂ = β₃x₃= β₄ = 0 C)H₁ : β₀ = β₁= β₂ = β₃x₃= β₄ = 0 D)H₁ : β₁≠ β₂ ≠ β₃x₃≠ β₄ ≠ 0

Question

Quizplus · Accepted Answer

The F-test of overall significance tests whether at least one of the coefficients in the model is significantly different from zero. The alternative hypothesis for this test is that at least one of the coefficients in the model is not equal to zero. The correct choice is A, as it presents an alternative hypothesis that includes all the coefficients (β₁, β₂, β₃, β₄) in the model.

If We Run the Regression Y = β0 + β1X1

If We Run the Regression Y = β₀ + β₁X₁