Wald test explained: restrictions on coefficients (Excel)

We all know how to use a simple t-test to figure out whether a coefficient is statistically different from zero. Turns out this logic can be elegantly generalised to test for any linear restriction on coefficients! This is what Wald test is designed for! Today we are investigating the Wald test and learning how to calculate it in Excel based on the example of constant versus increasing returns to scale of a production function. Don't forget to subscribe to NEDL and give this video a thumbs up for more videos in Statistics! Please consider supporting NEDL on Patreon: https://www.patreon.com/NEDLeducation