Econ B L5

Question 1

What happens if a variable that is correlated with the regressor is omitted from the model?

Answer 1

Assumption of mean independence fails

Question 2

Basic rule:

Answer 2

When wanting to analyse the properties of an estimator we write them as functions of x (because we condition on them) and u (because we make assumptions about them)

Question 3

See

Answer 3

lecture 5 all of it and finish it