auuuuu LILFIILI. JUL\" mu: RULE (LII.\" Elllmin- 1. Apartment developers sometimes add extra greenery? like more trees... to the premises of an apartment project1 hoping that it leads to higher apartment prices. Suppose you estimate a simple linear regression with dependent variable lnpnice1 log price of an apartment1 and the lone explanatory variable is greenery? which equals 1 if the project to which the apartment belongs has extra greenery and equals [1 otherwise: Ins-rice,- =1u+ylyreeneryg+m, i= 1,...,n (a) Suggest an omitted variable that would cause the OLE estimator in to be inconsistent for ,81, the true effect of greenery on lnpriee. [b] Use the omitted variable bias formula to sign the direction of the bias: '30" {31:32} Flim'il = .81 +32 WEI-1'1} (c) Suppose that you didn't realise that omitted variable bias was a problem. How would the bias that you nd in part {b} affect your conclusion regarding the effect of greenery on apartment prices