a) Suppose that there is a linear relationship between the number of studentsxin a school system and the annual budgety. How can a population regression model be written to describe this relationship.

(a) Which parameter in your model is the fixed cost in the budget (for example, the salary of the principals and some administrative costs) that does not change asxincreases?

(b) Which parameter in your model shows how total cost changes when there are more students in the system?

(c) Actual data from various school systems will not fit a straight line exactly. What term in your model allows variation among schools of the same sizex?