Imagine you would like to estimate the effect of the amount of rainfall in a given month in a region on the number of cars that were caught speeding in that region in a given month. You have data on both variables for multiple months. For this estimation, you can write down the error term of the econometric model as a¡ + Uit- a) What kind of factors are captured in a;? Give a general explanation and one example of such a factor in the specific context described above. b) What kind of factors are captured in Uit? Give a general explanation and one example of such a factor in the specific context described above.

Imagine you would like to estimate the effect of the amount of rainfall in a given month in a region on the number of cars that were caught speeding in that region in a given month. You have data on both variables for multiple months. For this estimation, you can write down the error term of the econometric model as a¡ + Uit- a) What kind of factors are captured in a;? Give a general explanation and one example of such a factor in the specific context described above. b) What kind of factors are captured in Uit? Give a general explanation and one example of such a factor in the specific context described above.