When testing joint hypothesis, you should A. use t- statistics for each hypothes

Question

When testing joint hypothesis, you should A. use t- statistics for each hypothesis and reject the null hypothesis is all of the restrictions fail. B. use the F- statistic and reject all the hypothesis if the statistic exceeds the critical value. C. use t- statistics for each hypothesis and reject the null hypothesis once the statistic exceeds the critical value for a single hypothesis. D. use the F- statistics and reject at least one of the hypothesis if the statistic exceeds the critical value.

Explanation / Answer

Correct option:

B. use the F - statistic and reject all the hypotheses if the statistic exceeds the critical value.

EXPLANATION:
In oint hypothesistesting, individual hypotheses are combined into a large testing framework, such that an intervention is only deemed preferred over its competitors if it fulfills an a priori set of crieria involving all hypotheses in the framework.If joint hypotheses are proven false, it is impossible to know which one was proven false.

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