Question: consider the following true process. However the regression relationship is estemited as. Will the estimate B1 be biased if the true value of Bo does

consider the following true process. However the regression relationship is estemited as. Will the estimate B1 be biased if the true value of Bo does not = 0?

2. Question 2: What is an omitted variable bias? What are the main consequences of omitted variable biases? Consider the following true process, 1% = :60 + lX + E- (0.1) However, the following regression relationship is estimated: g; 2 ingi- (0.2) Will the estimate of 31 be biased if the true value of g % 0? Explain

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