F-test Flashcards
(5 cards)
1
Q
n-k=
A
degrees of freedom
where n=sample size k=number of parameters
2
Q
If individual co-efficients are insignificant should they be dropped
A
co-effcients must be jointly tested to =0
3
Q
Unrestricted vs. restricted model
A
Unrestricted-where all variables are included
Restricted-estimated variables are forced to equal 0
4
Q
Purpose of dummy variable (D)
A
To turn qualative data (yes/no) into quantative 1/0
5
Q
When D=0 with interacting dummy variables
A
As Z= D * X
Slope intercept is change plus marginal effect is changed (slope of gradient)
