Homework Help is Here – Start Your Trial Now!
Math
Statistics
Are rent rates influenced by the student population in a college town? Let rent be the average monthly rent paid on rental units in a college town in the United States. Let pop denote the total city population, avginc the average city income, and pctstu the student population as a percentage of the total popula- tion. One model to test for a relationship is log(rent) = Bo + Bilog(pop) + Bilog(avginc) + Bpctstu + u. (i) State the null hypothesis that size of the student body relative to the population has no ceteris paribus effect on monthly rents. State the alternative that there is an effect. (ii) What signs do you expect for B, and B2? (iii) The equation estimated using 1990 data from RENTAL for 64 college towns is log(rent) = .043 + .066 log(pop) + .507 log(avginc) + .0056 pctstu (.844) (.039) (.081) (.0017) n = 64, R? = .458. What is wrong with the statement: “A 10% increase in population is associated with about a 6.6% increase in rent"? (iv) Test the hypothesis stated in part (i) at the 1% level.

Are rent rates influenced by the student population in a college town? Let rent be the average monthly rent paid on rental units in a college town in the United States. Let pop denote the total city population, avginc the average city income, and pctstu the student population as a percentage of the total popula- tion. One model to test for a relationship is log(rent) = Bo + Bilog(pop) + Bilog(avginc) + Bpctstu + u. (i) State the null hypothesis that size of the student body relative to the population has no ceteris paribus effect on monthly rents. State the alternative that there is an effect. (ii) What signs do you expect for B, and B2? (iii) The equation estimated using 1990 data from RENTAL for 64 college towns is log(rent) = .043 + .066 log(pop) + .507 log(avginc) + .0056 pctstu (.844) (.039) (.081) (.0017) n = 64, R? = .458. What is wrong with the statement: “A 10% increase in population is associated with about a 6.6% increase in rent"? (iv) Test the hypothesis stated in part (i) at the 1% level.

Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter3: Functions And Graphs
Section3.3: Lines
Problem 76E
See similar textbooks
icon
Related questions
Question
Are rent rates influenced by the student population in a college town? Let rent be the average monthly rent paid on rental units in a college town in the United States. Let pop denote the total city population, avginc the average city income, and pctstu the student population as a percentage of the total popula- tion. One model to test for a relationship is log(rent) = Bo + Bilog(pop) + Bilog(avginc) + Bpctstu + u. (i) State the null hypothesis that size of the student body relative to the population has no ceteris paribus effect on monthly rents. State the alternative that there is an effect. (ii) What signs do you expect for B, and B2? (iii) The equation estimated using 1990 data from RENTAL for 64 college towns is log(rent) = .043 + .066 log(pop) + .507 log(avginc) + .0056 pctstu (.844) (.039) (.081) (.0017) n = 64, R? = .458. What is wrong with the statement: “A 10% increase in population is associated with about a 6.6% increase in rent"? (iv) Test the hypothesis stated in part (i) at the 1% level.
Transcribed Image Text:Are rent rates influenced by the student population in a college town? Let rent be the average monthly rent paid on rental units in a college town in the United States. Let pop denote the total city population, avginc the average city income, and pctstu the student population as a percentage of the total popula- tion. One model to test for a relationship is log(rent) = Bo + Bilog(pop) + Bilog(avginc) + Bpctstu + u. (i) State the null hypothesis that size of the student body relative to the population has no ceteris paribus effect on monthly rents. State the alternative that there is an effect. (ii) What signs do you expect for B, and B2? (iii) The equation estimated using 1990 data from RENTAL for 64 college towns is log(rent) = .043 + .066 log(pop) + .507 log(avginc) + .0056 pctstu (.844) (.039) (.081) (.0017) n = 64, R? = .458. What is wrong with the statement: “A 10% increase in population is associated with about a 6.6% increase in rent"? (iv) Test the hypothesis stated in part (i) at the 1% level.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Linear Algebra: A Modern Introduction
Linear Algebra: A Modern Introduction
Algebra
ISBN:
9781285463247
Author:
David Poole
Publisher:
Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897…
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Algebra
ISBN:
9781680331141
Author:
HOUGHTON MIFFLIN HARCOURT
Publisher:
Houghton Mifflin Harcourt
Elementary Linear Algebra (MindTap Course List)
Elementary Linear Algebra (MindTap Course List)
Algebra
ISBN:
9781305658004
Author:
Ron Larson
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS