a. Mathematically express the CLRM assumption that is potentially violated if we omit a relevant variable from a regression model. b. Suppose we don't have variable X₂ in our data. If X'2 is a proxy for X₂, how would you use it? What needs to be true about X2 to elminate OVB in our regression? c. Suppose we don't have either X₂ in our data or a suitable proxy variable. We won't be able to eliminate OVB, but we could make some reasonable guesses about the nature of the bias. How would you attempt to do this?

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter1: Functions
Section1.2: The Least Square Line
Problem 4E
icon
Related questions
Question
M10
a. Mathematically express the CLRM assumption that is potentially violated if we omit a relevant
variable from a regression model.
b. Suppose we don't have variable X₂ in our data. If X'2 is a proxy for X₂, how would you use it?
What needs to be true about X2 to elminate OVB in our regression?
c. Suppose we don't have either X₂ in our data or a suitable proxy variable. We won't be able to
eliminate OVB, but we could make some reasonable guesses about the nature of the bias. How
would you attempt to do this?
Transcribed Image Text:a. Mathematically express the CLRM assumption that is potentially violated if we omit a relevant variable from a regression model. b. Suppose we don't have variable X₂ in our data. If X'2 is a proxy for X₂, how would you use it? What needs to be true about X2 to elminate OVB in our regression? c. Suppose we don't have either X₂ in our data or a suitable proxy variable. We won't be able to eliminate OVB, but we could make some reasonable guesses about the nature of the bias. How would you attempt to do this?
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Calculus For The Life Sciences
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Trigonometry (MindTap Course List)
Trigonometry (MindTap Course List)
Trigonometry
ISBN:
9781305652224
Author:
Charles P. McKeague, Mark D. Turner
Publisher:
Cengage Learning
Functions and Change: A Modeling Approach to Coll…
Functions and Change: A Modeling Approach to Coll…
Algebra
ISBN:
9781337111348
Author:
Bruce Crauder, Benny Evans, Alan Noell
Publisher:
Cengage Learning
College Algebra
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Algebra and Trigonometry (MindTap Course List)
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:
9781305071742
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning