Question: Consider a regression model y=d+x+2x2 + 3x3 +16 The variable x is not observed, but we use a proxy p for it. Let & be

Consider a regression model y=d+x+2x2 + 3x3 +16 The variable x is not observed, but we use a proxy p for it. Let & be the estimator of a obtained from the multiple regression equation. If you are told that the correlation between x1 and p is at least 0.8, explain how you will determine whether & has the correct sign (same sign as a).

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