1) The sum of squared residuals (SSR) of model 1 is 42.005, while the SSR of model 2 is 41.720. The total sum of squares of wages is 45.889. Table 1: OLS regressions of wages Model 2 % in Poverty Median House Value Model 1 (1) -1.077 (0.267) 0.090 (0.003) 0.348 (0.468) Crime Rate Median Family Income -0.512 (0.663) 0.01 (0.006) 0.253 (0.475) 0.006 (0.003) -0.023 (0.211) 4.379 (0.240) 381 0.096 Price of medium soda Constant 4.789 (0.066) Observations 381 R-squared 0.085 Notes: Standard errors included below parameter estimates in parentheses. a) Calculate the 90%, 95%, and 99% confidence intervals for the parameter estimate of % in poverty from model 1. Interpret your results. b) Interpret the R-squared of both models. Calculate the adjusted R-squared for both models and interpret. c) Do you think multicollinearity is a problem in either of these models? Why or why not? d) Calculate the F-statistic that will allow you to determine whether median family income and price of medium soda are jointly statistically significant. List out your null and alternative hypotheses. Interpret your findings. 1) The sum of squared residuals (SSR) of model 1 is 42.005, while the SSR of model 2 is 41.720. The total sum of squares of wages is 45.889. Table 1: OLS regressions of wages Model 2 % in Poverty Median House Value Model 1 (1) -1.077 (0.267) 0.090 (0.003) 0.348 (0.468) Crime Rate Median Family Income -0.512 (0.663) 0.01 (0.006) 0.253 (0.475) 0.006 (0.003) -0.023 (0.211) 4.379 (0.240) 381 0.096 Price of medium soda Constant 4.789 (0.066) Observations 381 R-squared 0.085 Notes: Standard errors included below parameter estimates in parentheses. a) Calculate the 90%, 95%, and 99% confidence intervals for the parameter estimate of % in poverty from model 1. Interpret your results. b) Interpret the R-squared of both models. Calculate the adjusted R-squared for both models and interpret. c) Do you think multicollinearity is a problem in either of these models? Why or why not? d) Calculate the F-statistic that will allow you to determine whether median family income and price of medium soda are jointly statistically significant. List out your null and alternative hypotheses. Interpret your findings