Question: ( # 1 ) ( Data exercise ) . You should use Stata for parts ( j ) and ( k ) of this problem.

(#1)(Data exercise). You should use Stata for parts (j) and (k) of this problem. Are rental 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 petstu the student population as a percentage of the total population. One model to test for a relationship is In(rent)= Bo + Biln(pop)+ B2ln(avginc)+ B3pctstu+ u a) State the null hypothesis that size of the student body relative to the population has no ceteris paribus effect on monthly rents. State the alternative that there is an effect. (Write the hypotheses as statements about the relevant model parameter(s).)

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