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The F-Statistic with Q = 2 Restrictions When Testing for the Restrictions

Question 19

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The F-statistic with q = 2 restrictions when testing for the restrictions β1 = 0 and β2 = 0 is given by the following formula: The F-statistic with q = 2 restrictions when testing for the restrictions β1 = 0 and β2 = 0 is given by the following formula: Discuss how this formula can be understood intuitively. Discuss how this formula can be understood intuitively.

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