1. In model (a), what is the estimated intercept? What is the estimated slope? Use the estimated regression to answer this question: How does the average value of years of completed schooling change when colleges are built close to where students go to high school? ( 2points)
2. Is the estimated effect of DistonEDin the regression in (b) substantively different from the regression in (a)? Based on this, does the regression in (a) seem to suffer from important omitted variable bias? ( 2points)
3. Compare the regression's fit in (a) and (b) using the standard error of the residual, R square, and adjusted R square. Why are the R square and adjusted R square so similar in regression (b)? ( 2 points)

Model a

Call: Im(formula = ed ~ dist, data = CollegeDistance) Residuals: Min 1Q Median 30 Max -1.9559 -1. 8091 -0.6624 2.0515 4.4844 Coefficients: Estimate Std. Error t value Pr(>Itl) (Intercept) 13.95586 0. 03772 369.945 Itl) (Intercept) 8. 827518 0. 250278 35.271