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Watts-College / paf-510-template

https://watts-college.github.io/paf-510-template/
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Lab 4 - Question 2 - Part 3: What exactly is this asking? #33

Closed swest235 closed 1 month ago

swest235 commented 7 months ago

@AntJam-Howell Can you please clarify what this question is asking us?

"Explain the direction of bias in this model using the formula for omitted variable bias: what must be true about the sign of the correlation between RSE and CSE to get these results?"

KaytieS commented 7 months ago

@swest235 I think it is asking about whether the sign of a1 is negative or positive, so since the direction of bias of the model is negative and B2 is positive, this means that the a1 value must be negative, since bias = a1* B2.

AntJam-Howell commented 7 months ago

@swest235 @KaytieS, Yes, correct interpretation. Since a1 is negative and B2 is positive the sign of the bias has to be negative.

swest235 commented 7 months ago

Thank you both for the clarification. @AntJam-Howell @KaytieS