Suppose We Omit X₃ (A Variable That Actually Affects Y) $\beta$

question 3

Multiple Choice

Suppose we omit X₃ (a variable that actually affects Y) from the following in a bivariate model
Y_i = $\beta$ ₀ + $\beta$ ₁X_1i + $\beta$ ₂X_2i + $\varepsilon$ _i
And suppose each of the independent variables are correlated with the other independent variables. What is the consequence of omitting X₃ on $\beta$ ₁hat?

• A) No effect; \(\beta\)₁hat will be unbiased.
• B) The bias will depend only on the correlation of X₁ and X_3.
• C) The bias will depend on the correlations of all the independent variables_.
• D) The bias will depend only on the correlation of X₁ and X_2.

Knowledge of PowerPoint's interface and tools to streamline the presentation creation process.

Understand how to effectively incorporate hyperlinks and web content into presentations.

Gain proficiency in adjusting slide elements accurately using guidelines, gridlines, and alignment features.

Learn to modify and customize shapes, including resizing, rotating, and flipping.

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