Suppose you estimate the equation colGPA = Bo + B1faminc+ B,hsGPA+ B3SAT + u where faminc is a student's family income that is reported on a survey when the student is in college. Because the data are self reported, you believe that the family income data recorded in faminc is not the exact income that a family has, but rather an approximation or best-guess. Which of the following is likely to be true about the estimated relationship between family income and college GPA B1 and the true relationship between family income and college GPA B1? A. E(ß1) = B1 B. E(B1) > B1 C. E(B) < B1 D. E(3) = 0

Suppose you estimate the equation colGPA = Bo + B1faminc+ B,hsGPA+ B3SAT + u where faminc is a student's family income that is reported on a survey when the student is in college. Because the data are self reported, you believe that the family income data recorded in faminc is not the exact income that a family has, but rather an approximation or best-guess. Which of the following is likely to be true about the estimated relationship between family income and college GPA B1 and the true relationship between family income and college GPA B1? A. E(ß1) = B1 B. E(B1) > B1 C. E(B) < B1 D. E(3) = 0

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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