Step-by-step explanation:
The regression equation is correctly written as:
log(rent) = β₀+β₁log(pop)+β₂log(avginc)+β₃pctstu+μ
1. this question requires us to State the null hypothesis that size of the student body relative to the population has no ceteris paribus effect on monthly rents.
<u>null hypothesis</u>
H₀ : β₃ = 0 (no effect exists)
<u>alternative that there is an effect.</u>
H₁ : β ≠ 0
2.
Due to increased demand when population is increased, the higher the number of people living in the city then there is a great likelihood that rent would increase. β1 will therefore be positive, all things being equal.
as average income rises, so also would rent as the people would have more money and therefore there would be increased demand for housing. This increase in demand would then cause a surge in the price of rent. β₂ would therefore be positive .
the last question you posted is incomplete so i was unable to go ahead with it.
