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Q4. Short answer questions (15 points) 1) In a single-independent variable model, what is the relationship between B and B ? More specifically, if

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Q4. Short answer questions (15 points) 1) In a single-independent variable model, what is the relationship between B and B ? More specifically, if is known to be too high in a given equation, would you expect to be too high, too low, or unaffected? Why? 2) Suppose you estimate equations A and B on the same data and find that = . What values for , , and/or does this result imply? A: Y = + X +ai 1i B: Y =+X +2X2 +i 1i

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