Business, 29.02.2020 01:51 jojo8617

Are rent rates influence 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 the pctstu the student population as a percentage of the total population. One model to test for a relationship is log(rent)=B0 + B1log(pop) + B2log(avginc) + B3(pctstu + u. (1). 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.(2). What signs do you expert for B1 and B2?(3). The equation estimated using 1990 data RENTAL1.RAW for 64 college town is, log(rent)=.043 + .066, log(pop) + .507 log(avginc) + .0056pctstu 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.(4). Test the hypothesis stated in part (i) at 1% level

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