If the true model is given by y=Bo+B1X1+B2X2+ɛ but we omit X2then Select one: O a. None of the above O b. the forecast of y will be biased Oc. if X1 and X2 are uncorrelated, the t statistic for testing B1=0 from the model with omitted variables is likely to be larger in absolute value than that from the true model O d. the estimated B1 will be biased O e. if X1 and X2 are uncorrelated, the s.e. of estimated B1 with omitted variables will be smaller than the s.e. of estimated B1 with the true model

If the true model is given by y=Bo+B1X1+B2X2+ɛ but we omit X2then Select one: O a. None of the above O b. the forecast of y will be biased Oc. if X1 and X2 are uncorrelated, the t statistic for testing B1=0 from the model with omitted variables is likely to be larger in absolute value than that from the true model O d. the estimated B1 will be biased O e. if X1 and X2 are uncorrelated, the s.e. of estimated B1 with omitted variables will be smaller than the s.e. of estimated B1 with the true model

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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