Suppose the true relationship of Y and X, Z is given by 1. Yi = β1Xi + β2Zi + ei under classical assumptions. Now, assum

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answerhappygod
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Suppose the true relationship of Y and X, Z is given by 1. Yi = β1Xi + β2Zi + ei under classical assumptions. Now, assum

Post by answerhappygod »

Suppose the true relationship of Y and X, Z is given
by
1. Yi = β1Xi + β2Zi + ei
under classical assumptions. Now, assume that you estimate β1by
regressing Yi on Xi only as
2. Yi = ˆβ1Xi + ˆei
Then find E( ˆβ1) is ˆβ1 in (1) unbiased?
.
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