5. Omitting relevant regressors from the model results in OLS estimators that are: a. biased but more precise. b. are both unbiased and more efficient. c. both biased and less efficient. d. None of the above

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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Chapter1: Starting With Matlab
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4. In the expression
Pr(deny = 1|P/I Ratio, black) = (-2.26 +2.74P/I ratio + 0.71black),
the effect of increasing the P/I ratio from 0.3 to 0.4 for a white person
a. is 0.274 percentage points.
b. is 6.1 percentage points.
c. should not be interpreted without knowledge of the regression R².
d. is 2.74 percentage points.
5. Omitting relevant regressors from the model results in OLS estimators that are:
a. biased but more precise.
b. are both unbiased and more efficient.
c. both biased and less efficient.
d. None of the above
Transcribed Image Text:4. In the expression Pr(deny = 1|P/I Ratio, black) = (-2.26 +2.74P/I ratio + 0.71black), the effect of increasing the P/I ratio from 0.3 to 0.4 for a white person a. is 0.274 percentage points. b. is 6.1 percentage points. c. should not be interpreted without knowledge of the regression R². d. is 2.74 percentage points. 5. Omitting relevant regressors from the model results in OLS estimators that are: a. biased but more precise. b. are both unbiased and more efficient. c. both biased and less efficient. d. None of the above
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