Question: f2. Use the data in the file ovb.xlsx. These data were generated so that y, = 1x1 +2x2 + &; or that B1 = 1

\f2. Use the data in the file ovb.xlsx. These data were generated so that y, = 1x1 +2x2 + &; or that B1 = 1 and B1 = 2. a. Regress y on X1, X2. Are the coefficient estimates significantly different from 1.0, 2.0? b. Are X1, X2 significantly correlated? c. Regress x1 on x2 and save the residuals. Then regress y, on just the residual of x, from the first stage. How do the estimates compare to part a above? d. Now suppose you do not observe x2. Regress y on just x1. Are the coefficient estimates significantly different from 1.0? Are they different from part a above? e. Using the results from c and d, decompose the OVB between the effects of x2 on x] on y

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