Suppose the Variable X2 Has Been Omitted from the Following

question 12

Multiple Choice

Suppose the variable x2 has been omitted from the following regression equation, is the estimator obtained when is omitted from the equation. The bias in is positive if _____.

• A) >0 and and are positively correlated
• B) <0 and and are positively correlated
• C) >0 and and are negatively correlated
• D) = 0 and and are negatively correlated

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