We included the variable X₁ in a linear model that explains the variable Y, but we did not include X2, a variable that we believe has a strong positive correlation with Y. All else constant, the larger [Select ] the larger will be the omitted variable (positive) bias.
We included the variable X₁ in a linear model that explains the variable Y, but we did not include X2, a variable that we believe has a strong positive correlation with Y. All else constant, the larger [Select ] the larger will be the omitted variable (positive) bias.
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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![We included the variable X₁ in a linear model that explains the
variable Y, but we did not include X2, a variable that we believe
has a strong positive correlation with Y. All else constant, the
large ✓ [Select ]
omitt
the positive correlation between X2 and the error term u
the positive correlation between X1 and Y
the positive correlation between X1 and X2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1858a710-c111-4513-9004-6c10bf7d1d6e%2F506cbc61-9bc3-4def-8aab-1cb8838a109c%2Fj1h8bc_processed.png&w=3840&q=75)
Transcribed Image Text:We included the variable X₁ in a linear model that explains the
variable Y, but we did not include X2, a variable that we believe
has a strong positive correlation with Y. All else constant, the
large ✓ [Select ]
omitt
the positive correlation between X2 and the error term u
the positive correlation between X1 and Y
the positive correlation between X1 and X2
![We included the variable X₁ in a linear model that explains the
variable Y, but we did not include X2, a variable that we believe
has a strong positive correlation with Y. All else constant, the
larger [Select]
the larger will be the
omitted variable (positive) bias.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1858a710-c111-4513-9004-6c10bf7d1d6e%2F506cbc61-9bc3-4def-8aab-1cb8838a109c%2Ftquvncc_processed.png&w=3840&q=75)
Transcribed Image Text:We included the variable X₁ in a linear model that explains the
variable Y, but we did not include X2, a variable that we believe
has a strong positive correlation with Y. All else constant, the
larger [Select]
the larger will be the
omitted variable (positive) bias.
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