title: Likelihood ratio test in R
body: <p>I have 2 linear models I have run in R</p>
  
  <pre><code>model_1_regression &lt;- lm(model_1$ff4f_actual_excess_return_month1 ~ model_1$Rm.Rf + 
                           model_1$SMB + 
                           model_1$HML + 
                           model_1$MOM, 
                           na.action=na.exclude)
  </code></pre>
  
  <p>and</p>
  
  <pre><code>model_1_mom_1_regression &lt;- lm(model_1_mom_1$ff4f_actual_excess_return_month1 ~ model_1_mom_1$Rm.Rf + 
                                 model_1_mom_1$SMB + 
                                 model_1_mom_1$HML + 
                                 model_1_mom_1$MOM +
                                 model_1_mom_1$mom_to_add,
                                 na.action=na.omit)
  </code></pre>
  
  <p>and I would like to run a likelihood ratio test to see if the additional factor added is significant. How can I do this, and how can I interpret the results shown?</p>
  
  <p>Many thanks</p>