In a study of travel-to-work distances the population density of regions within conurbations was modeled as a function of distance from their central business district. This generated the following...

Extracted text: In a study of travel-to-work distances the population density of regions within conurbations was modeled as a function of distance from their central business district. This generated the following regression results: Model A: Inŷ; = 12.65 – 0.319X; s.e. (2.4) (0.013) R? = 0.783 n = 40 Model B: Inî: = 10.92- - 0.28,/X; s.e. (1.95) (0.011) where the variables are: Y; = population density in area i X = distance from the central business district of the area a) Interpret intercept and slope coefficients in Model A. b) Show that heteroscedasticity has been removed in Model B. c) What are the implications of this for the results in the original regression (Model A) of population density and distance from the central business district? Analyse it. d) Ilustrate the fomal tests that can be used to detect the problem.