i)
Test the joint significance of the regressors white and lfaminc in (3). Conduct the test of
joint significance at the 5% significance level. Specify the unrestricted and restricted
models. State the null and alternative hypotheses, the form and sampling distribution of the
test statistic under the null, the sample and critical values for the test statistic, your decision
rule and your conclusion. Place the Eviews output for the restricted model in Appendix
(c).
ii) Comment on the statement that the race of the mother has no effect on birth weight once
we control for family income, the gender of the baby and cigarette consumptions by the
mother during pregnancy.
(8 marks)
Fig: 1