You are interested in the effect of school quality on home prices. You propose the following regression: price; = Bo + Bitestscore; +u; where testscore is the most recent standardized test score from the nearest elementary of home i. The dependent variable, price, is the sale price of home i. a. Draw two scatterplots of gpa and study hours-one where the errors are homoskedastic and one where the errors are heteroskedastic. Explain which error structure is more likely in the regression. Support your answer. b. Do you think the regression suffers from omitted variable bias? If so, which variables are missing? c. Assuming omitted variable bias exists, does the regression above overestimates or underestimates the effect of test scores on home prices? How serious of a problem is this? (Hint: 1 = Bi + Pxu * (Culox)) You are interested in the effect of school quality on home prices. You propose the following regression: price; = Bo + Bitestscore; +u; where testscore is the most recent standardized test score from the nearest elementary of home i. The dependent variable, price, is the sale price of home i. a. Draw two scatterplots of gpa and study hours-one where the errors are homoskedastic and one where the errors are heteroskedastic. Explain which error structure is more likely in the regression. Support your answer. b. Do you think the regression suffers from omitted variable bias? If so, which variables are missing? c. Assuming omitted variable bias exists, does the regression above overestimates or underestimates the effect of test scores on home prices? How serious of a problem is this? (Hint: 1 = Bi + Pxu * (Culox))