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Posted: July 20th, 2022
rent = −12.9468 + .00000335pop + .0157avginc + 1.7112pctstu
Question:
d. A model to test if rent rates are influenced by the student population in a college town is estimated by OLS as follows: rent = −12.9468 + .00000335pop + .0157avginc + 1.7112pctstu, ???? where rent is the average monthly rent paid on rental units in a college town, pop denote the total city population, avginc is the average city income, and pctstu the student population as a percentage of the total population. Agree or Disagree (and Justify your answer): The estimated equation indicates that the average city income is a more important determinant of the average monthly rent paid on rental units in a college town than is the total city population.
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