(i) Yes. If housing prices drop for those who live near an incinerator, those who move farther
away will pay a higher cost.
(ii) log(dist) is positively connected with housing quality if the city decided to place the
incinerator in an area away from more expensive neighborhoods. This would violate SLR.4,
and OLS estimation is biased.
(iii)There are a variety of elements that contribute to a home's value, including size of the
house, number of bathrooms, size of the lot, age of the home, and quality of the
neighborhood (including school quality). They might be related to dist [and log(dist)], as was
described in section (ii).