Suppose the Variable X₂ Has Been Omitted from the Following

question 6

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 negative 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

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