Please answer the following questions and explain. Thanks.

3. Using data from 1988 for houses sold in Andover, Massachusetts, from Kiel and McClain (1995), the following equation relates housing price (price) to the distance from a recently built garbage incinerator (dist): A log(p7"ice) = 9.40 + 0.312 log(di3t) n = 135, R2 = 0.162 (a) Interpret the coefficient on log(di3t). How changes in dist affect housing price? Is the sign of this estimate what you expect it to be? (10 pt) (b) What other factors about a house affect its price? Might these be corre- lated with distance from the incinerator? (Think about the citys decision on where to put the incinerator.) (10 pt) (c) Do you think simple regression provides an unbiased estimator of the ce- teris paribus elasticity of price with respect to dist? Explain your answer. (5 pt)