E the following null hypothesisnull hypothesis beta1


The Dead sheet in FDistFoodStamps.xls contains data that does not bounce. The data were generated according to the following DGP:

Food Purchases = β0 + β1 Number of adults in family+ β2 Number of children in family+ β3 Cash Income+ β4 Value of Food Stamps + ε.

a. Test the following null hypothesis:

Null Hypothesis: β1 = β2.

Alternative Hypothesis: β1 /= β2.

Use both the F- and t-statistic procedures and show that they produce equivalent results. The P-value Calculator Add-In may prove helpful.

b. Perform this hypothesis test:

Null Hypothesis: β1 = β2.

Alternative Hypothesis: β1 > β2.

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Microeconomics: E the following null hypothesisnull hypothesis beta1
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