MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN: 9781119256830
Author: Amos Gilat
Publisher: John Wiley & Sons Inc
Bartleby Related Questions Icon

Related questions

Question
Q8. 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 population. One model to test for a relationship is
log(rent) = 0.03048 +
0.5 * log(pop) +0.673 log(avginc) + 0.0046 pctstu
(.844)
(.039)
(.081)
(.0028)
i) State the null hypothesis that the percentage of students relative to the population
has no ceteris paribus effect on monthly rents. State the alternative that there is an
effect.
What signs do you expect for B₁ and ₂ ?
The equation estimated for 64 college towns is
log(rent) = 0.03048 + 0.5 * log(pop) + 0.673 log(avginc) + 0.0045 pctstu
(.844)
(.039)
(.081)
(.0017)
Standard errors are given in the parentheses. test the null hypothesis H_0 that "10% ceteris
paribus increase in population is associated with about a 6.6% increase in rent" at 1% level.
iv) Using estimated equation in part (iii), test the hypothesis stated in part 1 at 5% level
and 1% level.
iii)
expand button
Transcribed Image Text:Q8. 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 population. One model to test for a relationship is log(rent) = 0.03048 + 0.5 * log(pop) +0.673 log(avginc) + 0.0046 pctstu (.844) (.039) (.081) (.0028) i) State the null hypothesis that the percentage of students relative to the population has no ceteris paribus effect on monthly rents. State the alternative that there is an effect. What signs do you expect for B₁ and ₂ ? The equation estimated for 64 college towns is log(rent) = 0.03048 + 0.5 * log(pop) + 0.673 log(avginc) + 0.0045 pctstu (.844) (.039) (.081) (.0017) Standard errors are given in the parentheses. test the null hypothesis H_0 that "10% ceteris paribus increase in population is associated with about a 6.6% increase in rent" at 1% level. iv) Using estimated equation in part (iii), test the hypothesis stated in part 1 at 5% level and 1% level. iii)
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
MATLAB: An Introduction with Applications
Statistics
ISBN:9781119256830
Author:Amos Gilat
Publisher:John Wiley & Sons Inc
Text book image
Probability and Statistics for Engineering and th...
Statistics
ISBN:9781305251809
Author:Jay L. Devore
Publisher:Cengage Learning
Text book image
Statistics for The Behavioral Sciences (MindTap C...
Statistics
ISBN:9781305504912
Author:Frederick J Gravetter, Larry B. Wallnau
Publisher:Cengage Learning
Text book image
Elementary Statistics: Picturing the World (7th E...
Statistics
ISBN:9780134683416
Author:Ron Larson, Betsy Farber
Publisher:PEARSON
Text book image
The Basic Practice of Statistics
Statistics
ISBN:9781319042578
Author:David S. Moore, William I. Notz, Michael A. Fligner
Publisher:W. H. Freeman
Text book image
Introduction to the Practice of Statistics
Statistics
ISBN:9781319013387
Author:David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:W. H. Freeman