Amy investigates the impact of lecture attendance (LECTURE), tutorial attendance
(TUTORIAL), study hours (STUDY) and party hours (PARTY) on the module test mark of a
sample of 125 first-year Microeconomics students. In the first regression, she imposes the
restrictions that the slope parameters of LECTURE and TUTORIAL are zero, and the R2 of this
regression is 0.4777. There are no restrictions imposed in the second regression (i.e. all four
slope parameters are non-zero), and the R2 of this regression is 0.6355. Test if it is correct to
impose the abovementioned restrictions in the first regression at α = 1%. (6)
Hint: ( )
)1( /( )
/
2
22
knR
mRR F
UR
UR R
−−
− = , where m = number of restrictions imposed