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You believe that the time since an artist’s death has a larg…

You believe that the time since an artist’s death has a large impact on the price of their paintings. Using a random sample of oil painting sales (in thousands of dollars) and time from the artist’s death to the sale of the painting (in years) you generate the following regression output: oil painting sales = beta_0 + beta_1 * Time. You want to test the hypothesis that an additional ten years from the time of death to the sale of a painting will increase the price of the painting by $100,000. What is the null hypothesis?

5. Female is a binary variable taking on the value one for f…

5. Female is a binary variable taking on the value one for females and the value zero for males. State the null hypothesis H0 that there is no discrimination against women, and the alternative hypothesis H1 that there is discrimination against women.   Wage = beta0 + delta0*female + beta1*educ + u. 

14. Let rent be the average monthly rent paid on rental unit…

14. Let rent be the average monthly rent paid on rental units in a college town in the US. Let pop denote the total city population, avginc the average city income, and pctstu the student population as a percent of the total population. The regression model is: log(rent) = beta0 + beta1*log(pop) + beta2*log(avginc) + beta3*pctstu + u (i) State the null hypothesis that the student population as a percent of the total population has no impact on monthly rents. State the alternative that there is an effect. 

16. Consider a multiple regression analysis attempting to pr…

16. Consider a multiple regression analysis attempting to predict the value of a home from several variables. One variable of interest is the location of the home. If homes can be located in either a rural, urban, or suburban area, how many dummy variables would we need to include in this model in order to account for the location of a home?