b. What are the consequences of multicollinearity? Question 2 (9 points): Discuss directionality of the bias (if any) introduced by leaving a variable out of equation in each of the following cases (Hint: use the formula for Bias): a) You are trying to model average Econometrics class grade across different sections from different colleges as a function of average class attendance to determine whether absenteeism negatively impacts test scores. You forgot to include percentage of students employed while in school (this variable is now part of the error term). Would you expect the coefficient for average class attendance to be biased? If yes, discuss directionality of the bias. b) You are trying to model the relationship between wage and education to determine how much education increases wage. But you forgot to include IQ into your equation. Would you expect the coefficient for education to be biased? If yes, discuss directionality of the bias