Explanation

This question is about hypothesis testing in regression analysis at a 5% significance level. Without the specific regression results (t-statistics, p-values, or F-statistics), we cannot definitively determine which hypotheses can be rejected. However, based on typical FRM exam patterns:

• $H_0: B_0 = 0$ (Intercept test): Usually tested with t-statistic
• $H_0: B_1 = 0$ (Coefficient 1 test): Usually tested with t-statistic
• $H_0: B_2 = 0$ (Coefficient 2 test): Usually tested with t-statistic
• $H_0: B_1 = B_2 = 0$ (Joint test): Tested with F-statistic

Option D (I, III, and IV) suggests that the intercept, coefficient 2, and the joint test of both coefficients are statistically significant at the 5% level, while coefficient 1 is not significant.

Key concepts:

• Individual coefficient tests use t-statistics
• Joint hypothesis tests use F-statistics
• At 5% significance level, p-value < 0.05 means reject null hypothesis
• Without specific test statistics, we rely on the pattern that typically only some coefficients are significant in regression analysis