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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.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
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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.
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