問題詳情
【題組】
However, x3 has no effect on y after x1 and x2 have been controlled for. Because we do not knowthatβ3 = 0 in practice, we still estimate the equation including x3:
Notc that the variable x3 may or may not be correlated with x1 or x2. What is the effect, if any, ofincluding x3 in the model on the estimated β1? Explain.
5. Suppose we specify the model as
However, x3 has no effect on y after x1 and x2 have been controlled for. Because we do not knowthatβ3 = 0 in practice, we still estimate the equation including x3:
Notc that the variable x3 may or may not be correlated with x1 or x2. What is the effect, if any, ofincluding x3 in the model on the estimated β1? Explain.