Which of the following statements is true of hypothesis testing?
A)The t test can be used to test multiple linear restrictions.
B)A test of single restriction is also referred to as a joint hypotheses test.
C)A restricted model will always have fewer parameters than its unrestricted model.
D)OLS estimates maximize the sum of squared residuals.

Question

Quizplus · Accepted Answer

C) A restricted model, by definition, imposes constraints on the parameters, thus having fewer parameters than an unrestricted model which does not impose these constraints.

Which of the Following Statements Is True of Hypothesis Testing