CITIDCI O, 4021 Madison Williams: Attempt 1 Suppose the variable x2 has been omitted from the following regression equation, y - Bo + BIT1 + B212 + u. Let B1 be the estimator obtained when x2 is omitted from the equation (ie. when y is regressed only on T1). The bias in B1 as an estimator for B1 is negative if O B2 0 and x 1 and x 2 are negatively correlated O B2 =0 and x 1 and x 2 are positively correlated Question 13 (4 points) 4) Listen Which of the following is true of the R?? The R2 usually decreases when additional independent variables in a regression. R shows what percentage of the total variation in the dependent variable is explained by the explanatory variables. The R2 is also called the standard error of regression. A low R2 value indicates that the Ordinary Least Squares line fits the data well. to search O