Consider the monthly rent of a home in Ann Arbor, Michigan (Rent) as a function of the number of bedrooms (Beds), the number of bathrooms (Baths), and square footage (Sqft).
a. Access the data labeled Ann Arbor Rental from the text website and estimate Rent = 10 + β1 Beds + β 2Baths + β3Sqft + ε.
b. Which of the explanatory variables might cause heteroskedasticity in the model? Explain.
c. Use residual plots to verify your economic intuition.