Question 6Are rental rates influenced by the student population in a college town? Let rent be theaverage monthly rent paid on rental units in a college town in the United States. Let popdenote the total city population An econometric model to test for this relationship is:=rent Bo+Bipop+uEsimate regression equation is as followsrent=412+ 0.00013pop(18.17) (0.00015)The numeric value in the parenthesis represents standard error. (For example,Var(B1)= 0.00015)Calculate Tstatistics of B1Round to two decimal places if neededQuestion 74 pts4 pts

Step 1: Identify the formula for the test statistic (Tstatistic) of β1 (given β1 is pop, we know pop…

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Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4A: Problems In Applying The Linear Regression Model

Section: Chapter Questions

Problem 1E

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A marketing analyst wants to examine the relationship between sales (in $1,000s) and advertising (in $100s) for firms in the food and beverage industry and collects monthly data for 25 firms. He estimates the modet: Sales- Bo + B1 Advertising +t. The following table shows a portion of the regression results. Coefficients Standard Error t-stat p-value Intercept 40.10 14.08 2.848 0.0052 Advertising 2.88 1.52 -1.895 0.0608 Which of the following are the competing hypotheses used to test whether the slope coefficient differs from 3? Multiple Choice Ho i bị 3; HAtbi3 Họ ib - 2.88; HAibi 2.88
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