Questions 32 33 As we know from class education matters a lot to explain was more years of eccanion are related to her wages in the first proposed econometric model education belongs to the errorem. We also know that in our population of interest, race and gender are both correlated with the number of years of education in particular, Females have much lower drop out rates than mand blocks have much higher drop out rates than nonblacks. These facts imply that our - 45.09 und 16981 are based and inconsistent because they are subject to omitted variable bas. The correct model should be wwgeh female black + seduce where educ denotes the number of years of education. The ols, and from our incorrect model presented at the beginning of the exam can be approximated by ma 8, and 3. Bys con Nackde wrock) D Question 32 Is , upward or downward biased? upward downward Question 33 is , upward or downward biased? upward Odownward