A school association decides to build a model of the number of books in 60 school libraries. It produces the following results of a regression model: VOLi = -1842 + 0.038STUi(0.026) + 1.73FACi(0.44) + 1.83Scorei(0.82) , R2 = 0.81 N = 60 . Where VOLi = thousands of books in the ith school's library STUi = the number of students in the ith school FACi= the number of faculty in the ith school. Scorei = the average final exam scores of students in the ith school a) The school association is interested to know whether each explanatory variable exert any impact on the number of books. What test can be done, with the given information in the question, to deal with this issue? Perform the test at 1% significance level. b) The simple correlation coefficient between STU and FAC is 0.95, White's test x2 test statistics = 40 and the Durbin-Watson test statistic = 1.91. Given this information, what econometric problem(s) appear(s) to exist in this regression model. Explain. c) Given question a) and b), if you have detected one single problem, how would you address the problem? If you have detected more than one problem, how would you address the problem; and explain which problem you will attempt to correct first? d) Interpret the constant. Does it make sense economically? Explain. e) If the constant estimate turns out to be statistically insignificant from zero, would you still retain a constant in your regression model or would you rather remove it? Explain.