Every year in Massachusetts, each town sends quenched persomal associates to enumerate the appreciate of each town’s seeds. The toil of an associate is to approach what the sale figure of each seed would be if it were to be put up for sale this year. In assumption the assessed appreciate of each seed (A) and a seed’s sale figure on the traffic (P) should be very cease to each other, yet some studies possess claimed that there is a “regressive” kindred betwixt A and P. This media that lowlyly appreciate seeds are often over-assessed (so these owners overpay on their ownership taxes), and high-appreciate seeds are often under-assessed (so these owners underpay on their ownership taxes).
A.Suppose you were because span models to search this kindred: (1) Pi = ?0 + ?1Ai + µi (2) ln(Pi) = ?0 + ?1ln(Ai) + µi What could aid you determine betwixt using models (1) and (2)? Explain.
B. If you ran a retrogradation of P on A, would this please total of the Gauss-Markov assumptions for unbiasedness? Explain why or why not attributable attributable.
C.How would issues of associate accuracy/fault contact a retrogradation of P on A? Would associate fault subject if, on middle, associates could uprightly survey the appreciate of seeds? Explain.