2.13 Using 2011 data on 141 U.S. public research universities, we examine the relationship between academic cost per student, ACA (real total academic cost per student in thousands of dollars) and full-time enrollment FTESTU (in thousands of students). a. The least squares fitted relation is ACA = 14.656 + 0.266FTESTU. What is the economic interpretation of the estimated parameters? Why isn't the intercept zero? b. In 2011 Louisiana State University (LSU) had a full-time student enrollment of 27,950. Using the fitted related in part (a), compute the predicted value of ACA. c. The actual value of ACA for LSU that year was 21.403. Calculate the least squares residual for LSU? Does the model overpredict or underpredict ACA for LSU? d. The sample mean (average) full-time enrollment in U.S. public research universities in 2011 was 22,845.77. What was the sample mean of academic cost per student? 2.14 Consider the regression model WAGE = B, + B,EDUC + e, where WAGE is hourly wage rate in U.S. 2013 dollars and EDUC is years of education, or schooling. The regression model is estimated twice using the least squares estimator, once using individuals from an urban area and anain for individuals in a rural area