F-test

Problem

Consider the Crime data at http://www.oswego.edu/~kane/econometrics/data.htm . Run a regression with y = crime, x2 = pov, x3 = metro, x4 = popdens. Test \(H_0: β_2=100, β_3=25\) at \(α=0.05\) .

Solution

You can do View (from the equation box) / Coefficient diagnostics / Wald test and type “c(2)=100, c(3)=25”. Alternatively, use the command “eq01.wald c(2)=100, c(3)=25”. P-value < 0.05 so do not reject.