prob02reg_sol - : 507 10 + 0 : 005 6 + 0 : 003 . (3) 1%...

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1. (1) yes. it is linear in the parameters. (2) the amount of unit increase in y due to 1 unit increase in x . (3) yes. it is linear in the parameters. (4) b 1 unit increase in log y and 100 b 1 % increase in y . 2. (1) from y i = b & 0 + b 1 x i + b u i y = 1 n P n i =1 y i = 1 n P n i =1 b & 0 + b 1 x i + b u i ± = b & 0 + b 1 1 n P n i =1 x i + 1 n P n i =1 b u i = b & 0 + b 1 x (2) subtract y = b & 0 + b 1 x from y i = b & 0 + b 1 x i + b u i (3) P n i =1 ( x i x ) b u i = P n i =1 x i b u i x P n i =1 b u i = 0 0 = 0 (4) P n i =1 ( x i x ) ( y i y ) = P n i =1 ( x i x ) y i y P n i =1 ( x i x ) = P n i =1 ( x i x ) y i 0 = P n i =1 ( x i x ) y i reg logrent logpop logavginc pctstu year91 (2) 0 : 043 + 0 : 066 ± 20 + 0
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Unformatted text preview: : 507 10 + 0 : 005 6 + 0 : 003 . (3) 1% increase. (4) rent in year 1991 was higher than that in year 1990 by : 3% . (5) b + b 4 year 90 = b + b 4 (1 & year 91) = ( b + b 4 ) & b 4 year 91 : 043 + 0 : 003 year 91 b = 0 : 046 , b 1 = 0 : 066 , b 4 = & : 003 . 3...
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