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Suppose We Omit X2 from the Following in a Bivariate β\beta

Question 1

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Suppose we omit X2 from the following in a bivariate model
Yi = β\beta 0 + β\beta 1X1i + ε\varepsilon i
And suppose X2 is negatively related to X1 and β\beta 2 is positive, while β\beta 1 is positive. What is the likely effect of omitting X2 on our estimate of β\beta 1?


A) No effect; β\beta 1hat will be unbiased.
B) β\beta 1hat will be more positive than it should be.
C) β\beta 1hat will be less positive than it should be.
D) β\beta 1hat will equal zero.

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