If the omitted variable is negatively correlated with the treatment and has a positive impact on the outcome, the true causal effect is bigger than the estimated effect.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.6: Regression And Median-fit Lines
Problem 4GP
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If the omitted variable is negatively correlated with the treatment and has a positive impact on the outcome, the true causal effect is bigger than the estimated effect.

Blank 1: enter "True" or "False"

Blank 2: explain briefly (1-3 lines).

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