Consider the OLS regression equation: ŷ = 0 + Â₁×1 + B₂X2 + Â33. If the R² is close to zero, it implies O x3 is not highly correlated with X₁ O B3 is likely to be biased O B3 is likely to be unbiased O that we expect the estimate of B3 to be noisy.

A First Course in Probability (10th Edition)
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ISBN:9780134753119
Author:Sheldon Ross
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Chapter1: Combinatorial Analysis
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Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Consider the OLS regression equation: ŷ = 0 + Â₁×1 + B₂X2 + Â33. If the R² is close to zero, it implies
O x3 is not highly correlated with X₁
O B3 is likely to be biased
O B3 is likely to be unbiased
O that we expect the estimate of B3 to be noisy.
Transcribed Image Text:Consider the OLS regression equation: ŷ = 0 + Â₁×1 + B₂X2 + Â33. If the R² is close to zero, it implies O x3 is not highly correlated with X₁ O B3 is likely to be biased O B3 is likely to be unbiased O that we expect the estimate of B3 to be noisy.
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