Suppose that we have fit the straight-line regression model $hat{y}=hat{beta}_{0}+hat{beta}_{1} x_{1}$ but the response is affected by
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Suppose that we have fit the straight-line regression model $\hat{y}=\hat{\beta}_{0}+\hat{\beta}_{1} x_{1}$ but the response is affected by a second variable $x_{2}$ such that the true regression function is \[E(y)=\beta_{0}+\beta_{1} x_{1}+\beta_{2} x_{2}\]
a. Is the least-squares estimator of the slope in the original simple linear regression model unbiased?
b. Show the bias in $\hat{\beta}_{1}$.
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Related Book For
Introduction To Linear Regression Analysis
ISBN: 9781119578727
6th Edition
Authors: Douglas C. Montgomery, Elizabeth A. Peck, G. Geoffrey Vining
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