3. [15 points] Interpretation. You wish to examine how the cost of renting an apartment varie with town characteristics. You have data on 100 small towns, including average rent for a on bedroom apartment in dollars (rent), the population (pop), the number of apartments (apts) and the average income of residents in dollars (avginc). (1) rent, = 600.00 + 0.05pop; - 0.25apts; + 0.04auginc; (2) In(rent;) = 6.55 + 0.15in(pop;) - 0.33(apts;) + 0.25(avginc;) a) (2 points) Interpret the coefficient on apts in specification (1) in a sentence. Be precise. b) (2 points) Based on specification (1), what is the predicted change in rent if 1,000 apartments are removed from the market and average income increases by 2,000 dollars? c) (2 points) Interpret the coefficient on In(apts) in specification (2) in a sentence. Be precise. d) (2 points) Suppose that average income in a town increases from 50,000 to 60,000. What is the expected change in the price of rentals based on specification (2)