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

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter1: Introducing The Economic Way Of Thinking
Section1.A: Applying Graphs To Economics
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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
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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