Question
Suppose high school grades are a function of the poverty rate in the area in which the school is located and per-student expenditures at the
Suppose high school grades are a function of the poverty rate in the area in which the school is located and per-student expenditures at the school.
Graduate = α1 + α2povrate + α3expend + ut
But you naively estimate the following instead:
Graduate = α1 + α2povrate + ut
What is a type of bias that you are committing? What is the direction of that bias?
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Business Analytics Data Analysis And Decision Making
Authors: S. Christian Albright, Wayne L. Winston
6th Edition
1305947541, 978-1337225274, 1337225274, 978-0357689066, 978-1305947542
