You are interested in analyzing how rent controls affect students' housing outcomes. You collect information from a random sample of 350 counties across the US. Let on_campus summarize the share of undergraduate students in the county that live on campus. Let rent_control be an indicator variable equal to 1 if the county has rent controls and zero if it does not. These are the descriptive statistics for your sample: rent_control = 0.1 on_campus = 0.18 sample variance of rent_control = s²rent_control = 0.3 sample variance of on_campus = s². = 0.2 on_campus
You are interested in analyzing how rent controls affect students' housing outcomes. You collect information from a random sample of 350 counties across the US. Let on_campus summarize the share of undergraduate students in the county that live on campus. Let rent_control be an indicator variable equal to 1 if the county has rent controls and zero if it does not. These are the descriptive statistics for your sample: rent_control = 0.1 on_campus = 0.18 sample variance of rent_control = s²rent_control = 0.3 sample variance of on_campus = s². = 0.2 on_campus
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![You are interested in analyzing how rent controls affect students' housing outcomes. You collect
information from a random sample of 350 counties across the US. Let on_campus summarize the
share of undergraduate students in the county that live on campus. Let rent_control be an indicator
variable equal to 1 if the county has rent controls and zero if it does not.
These are the descriptive statistics for your sample:
rent_control = 0.1
on_campus = 0.18
sample variance of rent_control = s°rent_control = 0.3
sample variance of on_campus = s.
on_campus
= 0.2
sample covariance between on_campus and rent_control = 0.26
Use these descriptive statistics and OLS to estimate the B1 parameter in the following simple linear
regression model:
on_campus = Bo + Birent_control + u](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7b8c9b98-5fbd-4d31-a6f4-3d74ac9a7d10%2F1f345ef5-7976-4bcb-9696-da62702a8961%2Fk6etryr_processed.png&w=3840&q=75)
Transcribed Image Text:You are interested in analyzing how rent controls affect students' housing outcomes. You collect
information from a random sample of 350 counties across the US. Let on_campus summarize the
share of undergraduate students in the county that live on campus. Let rent_control be an indicator
variable equal to 1 if the county has rent controls and zero if it does not.
These are the descriptive statistics for your sample:
rent_control = 0.1
on_campus = 0.18
sample variance of rent_control = s°rent_control = 0.3
sample variance of on_campus = s.
on_campus
= 0.2
sample covariance between on_campus and rent_control = 0.26
Use these descriptive statistics and OLS to estimate the B1 parameter in the following simple linear
regression model:
on_campus = Bo + Birent_control + u
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