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25-05-2023
Business

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Suppose the true relationship of Y and X, Z is given by
1. Yi = β1Xi + β2Zi + ei
under classical assumptions. Now, assume that you estimate β1by regressing Yi on Xi only as
2. Yi = ˆβ1Xi + ˆei
Then find E( ˆβ1) is ˆβ1 in (1) unbiased?

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