For a linear regression model, U₁ = Bo + B₁X₁ + u₁. (1) Suppose there is another variable W, that partly determines Y₁.

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For A Linear Regression Model U Bo B X U 1 Suppose There Is Another Variable W That Partly Determines Y 1 (26.04 KiB) Viewed 329 times

For a linear regression model, U₁ = Bo + B₁X₁ + u₁. (1) Suppose there is another variable W, that partly determines Y₁. Which term in the above regression contains the information of W? What happens to the OLS estimator of 3₁ if X, and W, are negatively correlated? (2) Suppose that X, is randmized based on covariate W₁, write down the correct regression model and assumptions for this model. (3) If there are measurement errors in the dependent variable, will it necessarily cause a problem in the ordinary least square estimation? (4) How does the variance of the error term affect hypothesis testing of the regression