Exam+2+-+2010

# Exam+2+-+2010 - Department of Economics University of...

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Department of Economics Professor Dale J. Poirier University of California, Irvine November 16, 2010 EXAM 2 ECON 123A Econometrics I Directions : You must answer each of the following questions. Points (out of 100) are allocated as noted to the left of each question. Allocate your time according to these points. To receive any partial credit, you must show your work. Assume the classical linear model assumptions MLR.l through MLR.6 hold in each question. 1. 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 + \$ 1 log( pop ) + \$ 2 log( avginc ) + \$ 3 pctstu + u. The equation estimated using data from 64 college towns is log( rent ) = .043 + .066 log( pop ) + .507 log( avginc

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Exam+2+-+2010 - Department of Economics University of...

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