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You have a regression model: wage= 0+ 1qualification+ u Q. You realised that you did not add an experience level in the model. What kind
You have a regression model:
wage=0+1qualification+u
Q. You realised that you did not add an experience level in the model. What kind of bias do you have in this model? Does this bias lead to an overestimation or an underestimation of the estimated slope. Assume that qualification and experience are negatively correlated and provide an explanation for the direction of the bias
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