Question: 2. Suppose we have a true model: y = Bo+ BXi + B2Xzi+u; but we estimate the following model: y = Po + BXi

2. Suppose we have a true model: y = Bo+ BXi +

2. Suppose we have a true model: y = Bo+ BXi + B2Xzi+u; but we estimate the following model: y = Po + BXi + u. yi 1i a. Given that we know this will produce biased estimators, please derive the bias.

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