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1 the disturbance term in linear regression incorporates

1. The disturbance term in linear regression incorporates the influences of all of the regressors in the linear regression.TrueFalse

2. Test H0: β2 = 1 vs. H1: β2 >1 if the following information from a simple regression is given: b2 = 1.39, sb2= 0.18, and n = 30.

A. Reject H0 for α = 0.005
B. Reject H0 for α = 0.025
C. Reject H0 for α = 0.01
D. Unable to reject H0 for α < 0.05

3. Which of the following will decrease the standard error of the slope estimate b2?

A. None of these answers are correct.
B. Increase the sample size.
C. Increase the RSS.
D. Decrease the variation in X.

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