If the omitted variable is negatively correlated with the treatment (x1,x2)<0 and has a positive impact on the outcome(b2>0), then the effect of b1 is overestimated or underestimated?

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.1: Measures Of Center
Problem 9PPS
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If the omitted variable is negatively correlated
with the treatment (x1,x2)<0 and has a
positive impact on the outcome(b2>0), then
the effect of b1 is overestimated or
underestimated?
Transcribed Image Text:If the omitted variable is negatively correlated with the treatment (x1,x2)<0 and has a positive impact on the outcome(b2>0), then the effect of b1 is overestimated or underestimated?
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