Suppose you have the following model: Y=B +B,X1 +BX2+E To estimate this model, you run the following OLS regression: Y=B, +BX te There are two potential candidates for X;: x such that it is...

2

Extracted text: Suppose you have the following model: Y=B +B,X1 +BX2+E To estimate this model, you run the following OLS regression: Y=B, +BX te There are two potential candidates for X;: x such that it is determinant of Y and x such that it is not determinant of Y. Assuming both candidates are not correlated with X, which candidate would result in omitted varlable blas? neither candidate both candidates d.


Extracted text: Suppose you have the following model: To estimate this model, you run the following OLS regression: Y-B BXte There are two potential candidates for Xy X} such that cor X. X) - 0 and x such that cor(X,xD = 0. Assuming both candidates are determinant of Y, which candidate would result in omitted varlable blas? neither candidate b. both candidates d.