Selection of the appropriate model (dependent variable = ATR)
| Purpose | Null hypothesis | Test | t-statistics |
|---|---|---|---|
| OLS vs FEM | All ui = 0 | Restricted F-test | F(71, 328) = 22.05*** |
| OLS vs REM | σ2u = 0 | Breusch–Pagan Lagrange multiplier test | χ2(1) = 528.71*** |
| FEM vs REM | Difference in coefficients is not systematic | Hausman test | χ2(9) = 60.25*** |
| Purpose | Null hypothesis | Test | |
|---|---|---|---|
| OLS vs FEM | All | Restricted | |
| OLS vs REM | Breusch–Pagan Lagrange multiplier test | ||
| FEM vs REM | Difference in coefficients is not systematic | Hausman test |
Note(s): ***Significant at 1% level
Source(s): Calculated by researchers
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