Consider the fitted regression lineIn(S core)=6.336+0.0554In(Income),(0.006)(0.0021)where In denotes the natural logarithm,Score denotes the student’s test Score (S core 60 means60 marks),Income denotes the average annual per capita income in the school area (measuredin thousands of sterling pounds;Income 2 means f2000).The values in brackets underneaththe parameter estimates are the corresponding standard errors.Use this information to answerquestions 6-7 below.6.What is the most appropriate interpretation of the parameter estimate 0.0554?(a)If the average annual per capita income in the school area increases by E1,the student’sscore is expected to increase by 5.54%.(b)If the average annual per capita income in the school area increases by￡lOOO,the student’sscore is expected to increase by 5.54%.(c)If the average annual per capita income in the school area increases by 1%,the student’sscore is expected to increase by 5.54%.(d)If the average annual per capita income in the school area increases by E1,the student’sscore is expected to increase by 0.0554%.(e)If the average annual per capita income in the school area increases by￡lOOO,the student’sscore is expected to increase by 0.0554%.(f)If the average annual per capita income in the school area increases by 1%,the student’sscore is expected to increase by 0.0554%.(g)If the average annual per capita income in the school area increases by f1,the student’sscore is expected to increase by 0.0554.(h)If the average annual per capita income in the school area increases by f1000,the student’sscore is expected to increase by 0.0554.(i)If the average annual per capita income in the school area increases by 1%,the student’sscore is expected to increase by 0.0554.7.What is the expected test score for a student whose school area has an average annual per capitaincome of￡1000？(a)6.336(b)6.719(c)564.53(d)827.73(e)None of the above

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