Midterm grades are determined partly by time spent studying and partly by efficiency of studying time. Studying time is measured, but efficiency is not. If you fail to control for efficiency when regressing midterm grades on studying time (in other words, if you don't include efficiency of studying in your model), and if studying time is negatively correlated to efficiency of studying, what bias can you expect in the coefficient on studying time? The coefficient on studying time will be biased downward, but cannot become negative There will be no bias in the coefficient on studying time The coefficient on studying time will be biased upwards The coefficient on studying time will be biased downwards, perhaps even becoming negative

MATLAB: An Introduction with Applications
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Midterm grades are determined partly by time spent studying
and partly by efficiency of studying time. Studying time is
measured, but efficiency is not. If you fail to control for
efficiency when regressing midterm grades on studying time
(in other words, if you don't include efficiency of studying in
your model), and if studying time is negatively correlated to
efficiency of studying, what bias can you expect in the
coefficient on studying time?
The coefficient on studying time will be biased downward, but
cannot become negative
There will be no bias in the coefficient on studying time
The coefficient on studying time will be biased upwards
The coefficient on studying time will be biased downwards,
perhaps even becoming negative
Transcribed Image Text:Midterm grades are determined partly by time spent studying and partly by efficiency of studying time. Studying time is measured, but efficiency is not. If you fail to control for efficiency when regressing midterm grades on studying time (in other words, if you don't include efficiency of studying in your model), and if studying time is negatively correlated to efficiency of studying, what bias can you expect in the coefficient on studying time? The coefficient on studying time will be biased downward, but cannot become negative There will be no bias in the coefficient on studying time The coefficient on studying time will be biased upwards The coefficient on studying time will be biased downwards, perhaps even becoming negative
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