Suppose the variable x2 has been omitted from the following regression equation, is the estimator obtained when is omitted from the equation. The bias in is positive if _____. A) 0 and and are positively correlated B) 0 and and are negatively correlated D) = 0 and and are negatively correlated

Question

Suppose the variable x2 has been omitted from the following regression equation, is the estimator obtained when is omitted from the equation. The bias in is positive if _____. A) >0 and and are positively correlated B) <0 and and are positively correlated C) >0 and and are negatively correlated D) = 0 and and are negatively correlated

Quizplus · Accepted Answer

When the variable x₂ is omitted from the regression, the bias in 11eab06d_2520_9f4e_beed_4db62edd9c1a_TB2133_11 is positive if 11eab06d_2520_9f4f_beed_cdace681f7f7_TB2133_11 >0 and 11eab06d_2520_c660_beed_d927c6e3a507_TB2133_11 and 11eab06d_2520_c661_beed_efcff0885c0e_TB2133_11 are positively correlated.

Suppose the Variable X2 Has Been Omitted from the Following