(This continues question 10.) Tom elects to run a regression of Yi on Xi , omitting Wi...
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(This continues question 10.) Tom elects to run a regression of Yi on Xi , omitting Wi . He will use the coefficient of Xi to estimate a.
(a) What happens to Tom if Xi and Wi are independent?
(b) What happens to Tom if Xi and Wi are dependent?
Hint: see exercise 3B15.
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