Explain how you would test for the restrictions on the parameters of the first version of the model

i) Explain how you would test for the restrictions on the parameters of the first version of the model, using the first and the second versions of the model regression results. Stating the null and alternative hypotheses of your test, carry out an appropriate test to identify the preferred model.

Explain what is meant by dummy variables and how you would use a dummy variable to examine the impact of Brexit referendum in June 2016 on TESCO’s stock return.