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

question 14

Multiple Choice

Suppose we omit X₂ from the following in a bivariate model
Y_i = $\beta$ ₀ + $\beta$ ₁X_1i + $\varepsilon$ _i
And suppose X₂ is positively related to X₁ and $\beta$ ₂ is positive, while $\beta$ ₁ is negative. What is the likely effect of omitting X₂ on our estimate of $\beta$ ₁?

• A) No effect; \(\beta\)₁ hat will be unbiased.
• B) \(\beta\)₁ hat will be more negative than it should be.
• C) \(\beta\)₁ hat will be less negative than it should be.
• D) \(\beta\)₁ hat will be biased toward zero.

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Definitions:

Signaling Molecules

Chemicals that are involved in transmitting information between cells, allowing for processes such as growth, immune response, and neurotransmission.

Hormones

Chemical substances produced in the body that regulate and control the activity of certain cells or organs.

Foul-Smelling

Emitting an unpleasant or offensive odor.

Pollinated

The process by which pollen is transferred from the male parts of a plant to the female parts of a plant, enabling fertilization and the production of seeds.