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even with family income into equation why my choice be correlated with mu 1. the students characteristics and some of her family background are omitted from the model and in the error term new one for example a diligent student is more likely to have a good test performance and she may also tend to attend a choice School the OLS estimate for the choice School effect on test scores may be upper biased without considering the diligence some families May care more about their childrenamp;#39;s education and choose a choice School these families may also have more resources for their childrenamp;#39;s education therefore their children do well on the test anyway these unobserved factors are in the error term and would be