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a. Mathematically express the CLRM assumption that is potentially violated if we omit a relevant variable from a regression model. b. Suppose we don't have variable X₂ in our data. If X'2 is a proxy for X₂, how would you use it? What needs to be true about X2 to elminate OVB in our regression? c. Suppose we don't have either X₂ in our data or a suitable proxy variable. We won't be able to eliminate OVB, but we could make some reasonable guesses about the nature of the bias. How would you attempt to do this?

a. Mathematically express the CLRM assumption that is potentially violated if we omit a relevant variable from a regression model. b. Suppose we don't have variable X₂ in our data. If X'2 is a proxy for X₂, how would you use it? What needs to be true about X2 to elminate OVB in our regression? c. Suppose we don't have either X₂ in our data or a suitable proxy variable. We won't be able to eliminate OVB, but we could make some reasonable guesses about the nature of the bias. How would you attempt to do this?

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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a. Mathematically express the CLRM assumption that is potentially violated if we omit a relevant variable from a regression model. b. Suppose we don't have variable X₂ in our data. If X'2 is a proxy for X₂, how would you use it? What needs to be true about X2 to elminate OVB in our regression? c. Suppose we don't have either X₂ in our data or a suitable proxy variable. We won't be able to eliminate OVB, but we could make some reasonable guesses about the nature of the bias. How would you attempt to do this?
Transcribed Image Text:a. Mathematically express the CLRM assumption that is potentially violated if we omit a relevant variable from a regression model. b. Suppose we don't have variable X₂ in our data. If X'2 is a proxy for X₂, how would you use it? What needs to be true about X2 to elminate OVB in our regression? c. Suppose we don't have either X₂ in our data or a suitable proxy variable. We won't be able to eliminate OVB, but we could make some reasonable guesses about the nature of the bias. How would you attempt to do this?
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