Yi = Bo + B1ri,i+ ui Based on the regression model given above, if we add an omitted variable x2,i, which is correlated with x1,i Can we use t-statistics at this point to test whether ß1 = 0 when B^1 is biased?

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
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ISBN:9780079039897
Author:Carter
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Chapter4: Equations Of Linear Functions
Section4.6: Regression And Median-fit Lines
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Yi = Bo + B1ri,i+ ui
Based on the regression model given above, if we add an omitted variable x2,i, which is correlated
with x1,i
Can we use t-statistics at this point to test whether B1 = 0 when ß^1 is biased?
Transcribed Image Text:Yi = Bo + B1ri,i+ ui Based on the regression model given above, if we add an omitted variable x2,i, which is correlated with x1,i Can we use t-statistics at this point to test whether B1 = 0 when ß^1 is biased?
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