[All Steps] We start off with a regression of Y on X2 and X3 and then consider adding variables X4, X5 and X6. To help decide whether to add these extra


Question: We start off with a regression of \(Y\) on X2 and X3 and then consider adding variables X4, X5 and X6. To help decide whether to add these extra variables, we decide to do a formal test. STATA output is below.

  1. What do we call this test?
  2. Write down the null and alternative hypotheses.
  3. Explain in your own words what these hypotheses mean.
  4. Perform the test at 5% .
  5. State your conclusion making sure you explain what your conclusion means and which of the 2 models you prefer.
  6. Explain why the degrees of freedom are what they are for this test.

Price: $2.99
Solution: The downloadable solution consists of 3 pages
Deliverable: Word Document

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