Suppose that when estimating the abov variableZ, What will be the error term

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter5: Graphs And The Derivative
Section5.2: Relative Extrema
Problem 2E
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You are given the following theoretical model
y=xB+ Zy+E
(a) Suppose that when estimating the above function a student left out a relevant
variableZ. What will be the error term in the estimated model?
(b) Obtain the bias.
(c) Under which condition will be unbiased?
Transcribed Image Text:You are given the following theoretical model y=xB+ Zy+E (a) Suppose that when estimating the above function a student left out a relevant variableZ. What will be the error term in the estimated model? (b) Obtain the bias. (c) Under which condition will be unbiased?
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