Refer to the regression Eqs. (13.3.1) and (13.3.2). In a manner similar to Eq. (13.3.3) show that
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Refer to the regression Eqs. (13.3.1) and (13.3.2). In a manner similar to Eq. (13.3.3) show that
E(α̂1) = β1 + β3(X̅3 − b32X̅2)
where b32 is the slope coefficient in the regression of the omitted variable X3 on the included variable X2.
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