The true relationship between y and three explanatory variables x can be written as follows:

y bob1xı + b2x23x3 u

however, you do not have access to the variables x1 and x2 in your data, so you estimate:

y = b3x3 + n

the relationship between the omitted variables and x3 can be expressed as follows:

601x3 + e3 x1 x2 = wo +w1x3 + €2

a) derive the expression for bo* and b3*
b) suppose that b1< 0 and b2> 0. now suppose that x3 is positively correlated with both x1 and x2. is b3 upward or downward biased. explain
c) suppose that y is income, xı is iq, x2 is work ethic, and x3 is years of education. argue that the estimate b3* is upward or downward biased using the expression you derived in part a)
d) what are two reasons why iq and work ethic might be omitted from the regression?

Your team has identified the risks on the project and determined their risk score. the team is in the midst of determining what strategies to put in place should the risks occur. after some discussion, the team members have determined that the risk of losing their network administrator is a risk they'll just deal with if and when it occurs. although they think it's a possibility and the impact would be significant, they've decided to simply deal with it after the fact. which of the following is true regarding this question? a. this is a positive response strategy.b. this is a negative response strategy.c. this is a response strategy for either positive or negative risk known as contingency planning.d. this is a response strategy for either positive or negative risks known as passive acceptance.

Ashop owner uses a reorder point approach to restocking a certain raw material. lead time is six days. usage of the material during lead time is normally distributed with a mean of 42 pounds and a standard deviation of four pounds. when should the raw material be reordered if the acceptable risk of a stockout is 3 percent?

Even sole proprietors should have at least how many computers? 1 2 3 4