Answered step by step
Verified Expert Solution
Question
1 Approved Answer
IfXhas a negative effect onY, andZhas a negative effect uponY, andXandZare negatively correlated, what is the expected consequence of omittingZfrom a regression ofYonX? Select one:
IfXhas a negative effect onY, andZhas a negative effect uponY, andXandZare negatively correlated, what is the expected consequence of omittingZfrom a regression ofYonX? Select one: A. The estimated coefficient on X will be biased upwards (insufficiently negative) B. The estimated coefficient on X (which should be positive) will be biased downwards to the point of becoming negative C. The estimated coefficient on X will be biased downwards (too negative) D. The estimated coefficient on X will be biased upwards to the point of becoming positive
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started