If δ₁ = Cov(x₁/x₂)/ Var(x₁)where X₁ and X₂ Are Two

question 9

Multiple Choice

If δ₁ = Cov(x₁/x₂) / Var(x₁) where x₁ and x₂ are two independent variables in a regression equation,which of the following statements is true?

• A)If x₂ has a positive partial effect on the dependent variable,and δ₁ > 0,then the inconsistency in the simple regression slope estimator associated with x₁is negative.
• B)If x₂ has a positive partial effect on the dependent variable,and δ₁ > 0,then the inconsistency in the simple regression slope estimator associated with x₁is positive.
• C)If x₁ has a positive partial effect on the dependent variable,and δ₁ > 0,then the inconsistency in the simple regression slope estimator associated with x₁is negative.
• D)If x₁ has a positive partial effect on the dependent variable,and δ₁ > 0,then the inconsistency in the simple regression slope estimator associated with x₁is positive.

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