Solved: Suppose that we have assumed the straight-line

Chapter , Problem 112MEE

(choose chapter or problem)

Suppose that we have assumed the straight-line regression model

\(Y=\beta_{0}+\beta_{1} x+\epsilon\)

but the response is affected by a second variable \(x 2\) such that the true regression function is

\(E(Y)=\beta_{0}+\beta_{1} x_{1}+\beta_{2} x_{2}\)

Is the estimator of the slope in the simple linear regression model unbiased?

Equation Transcription:

Text Transcription:

Y=\beta_0+\beta_1 x+\epsilon

X2

E(Y)=\beta_0+\beta_1 x_1+\beta_2 x_2

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