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Consider the multiple regression model with three control variables r, ry, and a3. where these three variables are determinants of the dependent variable y in
Consider the multiple regression model with three control variables r, ry, and a3. where these three variables are determinants of the dependent variable y in the popu- lation. You first regress the dependent variable y on both of and ry. Doing so. you find a pos- itive relationship between y and an. However, when regressing the dependent variable y on 71. 72. and 23. the estimated slope coefficients on ry and zy change by a large amount. Which of the following statements is correct You learn from your second regression that the cortiicicuts on off and ing in the first regression do not suffer from blas because you omitted s b. You learn from your regressions that the first regression does not suller from heteroskedasticity Your first regression suffers from omitted variable bias Your first regression sullers from perfect multicollinewly because the estimated slope onetheients on a and oz change In a large amount in like tiful toriussuing
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