Question: Refer to Equation 5.40 which discusses the regression-through-the-origin (i.e., zero-intercept) model. If there is in fact an intercept present in the model but you run
Refer to Equation 5.40 which discusses the regression-through-the-origin (i.e., zero-intercept) model. If there is in fact an intercept present in the model but you run it through the origin, what kind of specification error is committed? Document the consequences of this type of error with the data given in Table 2-13 (found on the textbook's Web site) in Chapter 2.
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Here we commit the error of omitting a relevant variable the intercept in the present instance Th... View full answer
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