Consider the following two models: Model 1: E(y) = β0 + β1x1 + β2x2 + β3x3 Model...

Consider the following two models:

Model 1: E(y) = β₀ + β₁x₁ + β₂x₂ + β₃x₃

Model 2: E(y) = β₀ + β₁x₁

Give the null hypothesis for comparing the two models with a best subset (or partial) F-test.

H₀: β₁ = β₂ = β₃

H₀: β₂ = β₃ = 0

H₀: β₁ = 0

Let x1 represent a quantitative independent variable and x2 represent a dummy variable for a 2-level qualitative independent variable. Which of the following models is the equation that produces two parallel curves, one for each level of your QL variable?

E(y) = β0 + β1x1 + β2x12 + β3x2 + β4x1x2 + β5x12x2

E(y) = β0 + β1x1 + β2x12 + β3x2

E(y) = β0 + β1x1 + β3x2

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