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Which of the following statements is true of hypothesis testing? a. A restricted model will always have fewer parameters...

Which of the following statements is true of hypothesis testing?

a. A restricted model will always have fewer parameters than its unrestricted model.

b. A test of single restriction is also referred to as a joint hypotheses test.

c. The t test can be used to test multiple linear restrictions.

d. OLS estimates maximize the sum of squared residuals.

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Answer #1

Answer : the answer is option a.

In case of hypothesis testing the restricted model always carry fewer parameters in compared to the unrestricted model. Therefore, option a is correct.

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