Multiple Choice
Suppose the variable x2 has been omitted from the following regression equation, .
is the estimator obtained when x2 is omitted from the equation.The bias in
is positive if _____.
A) >0 and x 1 and x 2 are positively correlated
B) <0 and x 1 and x 2 are positively correlated
C) >0 and x 1 and x 2 are negatively correlated
D) = 0 and x 1 and x 2 are negatively correlated
Correct Answer:

Verified
Correct Answer:
Verified
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