Suppose you want to study the effect that education spending

Suppose you want to study the effect that education spending has on housing prices, but you only have cross-sectional data (e.g. zip code level data for the year 2010). A colleague of yours recommends controlling for average January and July temperatures when performing your regression analysis. Why does your colleague recommend doing this? What other variables might you want to control for, and why?

Solution

This is because during these months temperature is extremely, there are vacations and less demand for education

The other factors are income, race etc since they also effect demand for housing and should be controlled for finding effect of only education