4. Suppose that you are interested in the determinants of car prices. You use data for 74 cars (n = 74). Your dependent variable is Inprice (natural logarithm of price of a car). Your explanatory variables are Inweight (natural logarithm of weight of a car), gear ratio (Gear ratio of a car) and a dummy variable foreign indicating whether a car is a foreign car (foreign = 1) or a domestic car (foreign = 0). Thus you estimate: Inprice; = Bo + Bilnweight; + Bagear ratio; + B3 foreigni + Ui by OLS and obtain the following results: Total U.S. Citizen (Y = 0) 0.118 Non-U.S. Citizen (Y = 1) 0.049 0.167 0.345 0.488 0.833 Economics Nobel Prize (X = 0) Physics, Chemistry, Medicine, Literature, and Peace Nobel Prize ( X =1) Total 0.463 0.537 1.00 a) Interpret all the estimated coefficients on Inweight, gear ratio and foreign. b) Test the hypothesis that B1 is significant. c) Use the estimation results to predict the change in price if the weight of a car is reduced percent. by 20 d) Test the overall signicance of the model at 5% signicance level. 4. Suppose that you are interested in the determinants of car prices. You use data for 74 cars (n = 74). Your dependent variable is Inprice (natural logarithm of price of a car). Your explanatory variables are Inweight (natural logarithm of weight of a car), gear ratio (Gear ratio of a car) and a dummy variable foreign indicating whether a car is a foreign car (foreign = 1) or a domestic car (foreign = 0). Thus you estimate: Inprice; = Bo + Bilnweight; + Bagear ratio; + B3 foreigni + Ui by OLS and obtain the following results: Total U.S. Citizen (Y = 0) 0.118 Non-U.S. Citizen (Y = 1) 0.049 0.167 0.345 0.488 0.833 Economics Nobel Prize (X = 0) Physics, Chemistry, Medicine, Literature, and Peace Nobel Prize ( X =1) Total 0.463 0.537 1.00 a) Interpret all the estimated coefficients on Inweight, gear ratio and foreign. b) Test the hypothesis that B1 is significant. c) Use the estimation results to predict the change in price if the weight of a car is reduced percent. by 20 d) Test the overall signicance of the model at 5% signicance level