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Question 4 For each of the following, write if the statement is true or false. For credit, you need to give the right explanation to
Question 4 For each of the following, write if the statement is true or false. For credit, you need to give the right explanation to your answer. a) Consider the true population model y = Bo + Pixi + 2x2 + u. Supposed that B2 = -10, and that X, and X2 are positively correlated. We estimate the model: y = Bo + Bix, + e, where e denotes the error term when x, is not included. The estimated , will upward biased. b) A researcher wants to analyze bias against Asians in college admissions. She collects data on applications and admissions for Asians and non-Asians. She then argues that if there is no difference in admission rates by race then there must be no discrimination
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