All students have to hand in this assignment by 5pm Monday 14 October 2019. Please print and submit both your answers and Stata code in the mail box of your instructor (6th floor of Econ Dept). 1. Apartment developers sometimes add extra greenery, like more trees, to the premises of an apartment project, hoping that it leads to higher apartment prices. Suppose you estimate a simple linear regression with dependent variable In price, log price of an apartment, and the lone explanatory variable is greenery, which equals 1 if the project to which the apartment belongs has extra greenery and equals 0 otherwise: lnprz'ce, = 70 + 'ylgreeneryi + m, i: 1,. . . ,n (a) Suggest an omitted variable that would cause the OLS estimator "Sq to be inconsistent for [31, the true effect of greenery on In price. (b) Use the omitted variable bias formula to sign the direction of the bias: cov (9:1, 9:2) P3377171 = 51 + 52 var (2:1) (c) Suppose that you didn't realize 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