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Give Several Economic Examples of How to Test Various Joint Rβ=rR \beta = r

Question 25

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Give several economic examples of how to test various joint linear hypotheses using matrix notation. Include specifications of Rβ=rR \beta = r where you test for (i) all coefficients other than the constant being zero, (ii) a subset of coefficients being zero, and (iii) equality of coefficients. Talk about the possible distributions involved in finding critical values for your hypotheses.

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