T/F-test Flashcards
When do you reject the Null hypothesis?
When the test statistic is greater than the critical value
What is the equation for the test statistic?
(Estimated B^ - Null hypothesis Bj)/ Se(estimated B^)
What is the P-value?
Smallest significance level which the null hypothesis would be rejected
What is the alternative hypothesis for an F-test?
Null hypothesis is not true
What is the value of q in an F-test?
The amount of exclusion restrictions
How does multicollinearity impact F-tests?
It may cause imprecise estimates and individually insignificant but jointly significant variables
How do you test the significance of a whole regression model?
Use the F-statistic equation for the whole model and perform test with null hypothesis (not significant)
How do we test 2+ coefficients?
Use an F-test: q (amount of exclusion restrictions) and n-k-1 for critical value (k is the number of explanatory variables in the unrestricted equation)
