You are interested in how the size of the student population effects rental prices in college towns in 1990 with the following regression model: (1) renti=0+pctstui1+ln(popi)2+ln(a where rent is monthly rent in dollars (ranging from $304 to $925 ), pctstu is the percent of the population that are students (range is 0100), pop is the population size of the city and avginc is the average income in the city. You are concerned that you should use ln( rent i) instead of renti as in the following alternative model, (2) ln(renti)=0+pctstui1+ln(popi)2+l Using the following Stata output, which model do you prefer (equation (1) or (2))? + reg rent petstu 1pop lavidinc - reg 1rent petste lpep Iwedne - predict Irenthat, wb sen=sex(1renta) + quitetly reg rent =, nocen + aredsct renthat, wb , d1 0.8939 2 , T2pest21 Prefer the model in equation (1) Prefer the model in equation (2) Not enough information to have a preference You are interested in how the size of the student population effects rental prices in college towns in 1990 with the following regression model: (1) renti=0+pctstui1+ln(popi)2+ln(a where rent is monthly rent in dollars (ranging from $304 to $925 ), pctstu is the percent of the population that are students (range is 0100), pop is the population size of the city and avginc is the average income in the city. You are concerned that you should use ln( rent i) instead of renti as in the following alternative model, (2) ln(renti)=0+pctstui1+ln(popi)2+l Using the following Stata output, which model do you prefer (equation (1) or (2))? + reg rent petstu 1pop lavidinc - reg 1rent petste lpep Iwedne - predict Irenthat, wb sen=sex(1renta) + quitetly reg rent =, nocen + aredsct renthat, wb , d1 0.8939 2 , T2pest21 Prefer the model in equation (1) Prefer the model in equation (2) Not enough information to have a preference