New and Confused. Multiple regression. Basic.

[noidea11]

Hello,

Just started learning about regression and having major difficulties with the following problem.

y=beta0 + beta1 + beta2 +beta3 + u


Need to test that beta1 = 0 and beta2 = 0.5beta3 simultaneously.

Scratching my head with where to begin. I assume I need to run a F-test. But I only have knowledge on how to form a restricted model when the restriction is exclusive. I am unsure how I would go about solving the above.

Would the restricted model be:

y=beta0 + 0.5beta3 + beta3

And then just apply the F-test formula.


Many thanks in advance.

[startz]

First, you need to get some X's into your equation. :)

Next, in EViews after you estimate the equation you'll find options under the View menu for specifying more than one restriction on the coefficients. EViews will then do the F-test.