Question: From statements i-iv, is those statement True or False with simple explanation yi = Bo + Bill,i + wi (1) i. In Stata you find
From statements i-iv, is those statement True or False with simple explanation

yi = Bo + Bill,i + wi (1) i. In Stata you find cor(uj, $1,i) = 0. This provides evidence that least-squares assumption 1 holds. ii. Consider the following regression models: yi = Bo + Bill,i + wi, (2) yi = 0o + 0122,i + ei. (3 Regression (2) always has a smaller R2 than regression (3). iii. Suppose regression (1) above has an omitted variable r2; which is correlated with the regressor $1.j. The estimate B1 is biased but you can still use a t-statistic to test whether B1 = 0. iv. In regression (1), the presence of outliers implies that the estimate By is biased
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
