True/false (please explain). Suppose that a regression of Y on X₁ is unbiased, and the true slope coefficient is 2. Another variable X₂ is correlated with Y, but it is uncorrelated with X₁. In expectation, the default t-statistic on B₁ will be larger in the multivariate regression that includes X₂ than in the bivariate regression that omits X₂.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
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ISBN:9780079039897
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Chapter4: Equations Of Linear Functions
Section4.6: Regression And Median-fit Lines
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True/false (please explain). Suppose that a regression of Y on X₁ is unbiased, and
the true slope coefficient is 2. Another variable X2 is correlated with Y, but it is
uncorrelated with X₁. In expectation, the default t-statistic on B₁ will be larger
in the multivariate regression that includes X₂ than in the bivariate regression
that omits X₂.
Transcribed Image Text:True/false (please explain). Suppose that a regression of Y on X₁ is unbiased, and the true slope coefficient is 2. Another variable X2 is correlated with Y, but it is uncorrelated with X₁. In expectation, the default t-statistic on B₁ will be larger in the multivariate regression that includes X₂ than in the bivariate regression that omits X₂.
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