Please answer the following questions and give an explanation.

2. Suppose that average worker productivity at manufacturing firms (augprod) depends on two factors, average hours of training (avgtrain) and average worker ability (avgabil): avgprod = Bo + Biaugtrain + Bzavgabil + u Assume that this equation satisfies the Gauss-Markov assumptions. If grants have been given to firms whose workers have less than average ability, so that avgtrain and avgabil are negatively correlated, what is the likely bias in B1 obtained from the simple regression of avgprod on augtrain?3. The following equation describes the median housing price in a community in terms of amount of pollution (non: for nitrous oxide) and the average number of rooms in houses in the community (rooms): log(price) = 30 + 51 log(noa:) + grooms + u (a) What are the probable signs of l and 52? What is the interpretation of 81? Explain. (b) Why might nom [or more precisely, log(noa:)] and rooms be negatively correlated? If this is the case, does the simple regression of log(prz'ce) on log(noa:) produce an upward or a downward biased estimator of ,8]