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(Solved): The relevant null hypothesis in this case would be H0:H0: 1=21=2. Equivalently, by creating ...



The relevant null hypothesis in this case would be H0:H0: ?1=?2?1=?2. Equivalently, by creating a new parameter ?? that is a linear combination of ?1?1 and ?2?2, this null can be stated as H0:H0: = 0 = 0. Rewriting ?2?2 in terms of ?1?1 and ?? yields . Plugging this new expression for ?2?2 into the regression model and simplifying yields log(wage)=?0+? univ+?1newVar+?3exper + ulog(wage)=?0+? univ+?1newVar+?3exper + u, which will allow you to test the null that ?1=?2?1=?2, by using the equivalent null that ? = 0? = 0. Which of the following represents the new variable newVarnewVar?



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