QUESTION 6 Estimate the population regression model: In(TestScore) - Bo+Biln(STR) + Bzlncome, + BaLunch, + u, where In(x) denotes the natural log of x. Note that the R-function log() computes the...

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Extracted text: QUESTION 6 Estimate the population regression model: In(TestScore) - Bo+Biln(STR) + Bzlncome, + BaLunch, + u, where In(x) denotes the natural log of x. Note that the R-function log() computes the natural log, i.e., log(x) computes the natural log of x. Choose the correct statoment. Oa We should not have included income tand Lunch because the hypothenin that B, = 0 and B, -0 and cannot be rejected at the 5% significance level. O b.The model here is worse than the models in Question 1 and Question 4 because the model here has the smallest g2 among the three models. OC The estimated elasticity of TestScore lo STRs approximately -0.0167 and it is significant at the 5% level. Od. The estimation results suggest that a 1% increase in STR would reduce TestScore by 1.67 points on the test. O e. The estimation results suggest that decreasing STR by one student would induce a 1.67 percent increase in TestScore.