Hypothesis Testing
Suppose a data set of 500 observations ( N 500) was analyzed using f >LS to examine the relationship between rent and student population in college cities. The regression results are as follows, with standard errors in parentheses:
log(rent)= 0.03 +0.8 log(pop) +0.007 pctslu + 0.7 log(avRinc)
(0.75) (0.00) (0 003) (°08>
where: rent = average monthly rent; pop = total city population avgiuc = average income of city residents; petstu = percentage of city population who are students

Econometrics
– Regression Model
– Hypothesis Testing
– Testing Multiple Linear restriction with the F-test
– Regression Model Interpretation
– Testing for Heterskedasticity

Econometrics Study Guide explanation and step by step how to do problems