D Question 13 13.8 pts Suppose you are interested in studying the determinants o

Question

D Question 13 13.8 pts Suppose you are interested in studying the determinants of housing prices. You intend to use the following simple regression model: price Bo +Bisqft+u Where "sqft" is the square footage of home Suppose that you have omitted a key explanatory variable "number of bath rooms 1. The omitted variable "number of bathrooms" is (positively/negatively) related to sqft"? 2. The effect of "number of bathrooms" is housing price 3. The simple regression model of estimated B. 1 will be biased (upward/downward)? (positively/negatively) impacting

Explanation / Answer

1.no of bathroom is positively related to the square feet as no of bathroom increase=>sqr feet increases..

2.positively as the slope coefficient for bathroom is >0

3.biased upwards

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