If a variable that is excluded from the model is correlated with an independent variable in the model, the regression coefficient will reflect the impact of the excluded variable on the dependent variable.

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Quizplus · Accepted Answer

This is known as omitted variable bias, and it can lead to an over or underestimation of the relationship between the included independent variable and the dependent variable. The regression coefficient will reflect the combined impact of the included and excluded variables on the dependent variable.

If a Variable That Is Excluded from the Model Is