Question: please solve both & show work! Suppose you have the following model: *= 8 + Bj , +8 + To estimate this model you run

please solve both & show work!

Suppose you have the following model: *= 8 + Bj , +8 + To estimate this model you run the following OLS regression Y-B- Bx te There are two potential candidates for Xx: *such that corX: X4-0 and XI such that cor (XX) -0. Assuming both candidates are determinant of y, which candidate would result in omitted variable blas? b. neither candidate d both candidates Suppose you have the following model: Y = B:+B.X; +BX2+ To estimate this model, you run the following OLS regression: Y=B+BX; te I There are two potential candidates for Xx: X, such that it is determinant of Y and xz such that it is not determinant of Y. Assuming both candidates are not correlated with X, which candidate would result in omitted variable blas? 6. x neither candidate d. both candidates

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