Testing a Linear Combination o Suppose instead of testing whether B, is equal to a constant, you want to test if it is equal to another parameter, that is Ho: Bi=B2 o Use same basic procedure for forming a t statistic t= B1-B2 se(61-B2 Economics 20- Prof anderson 19Economics 20 - Prof. Anderson 19 Testing a Linear Combination Suppose instead of testing whether b1 is equal to a constant, you want to test if it is equal to another parameter, that is H0 : b1 = b2 Use same basic procedure for forming a t statistic ( ) 1 2 1 2 ˆ ˆ ˆ ˆ b b b b − − = se t