If the u_i's are more likely to be positive when one of the explanatory variables is at higher values, then all of the estimators will be biased.

Name: If the u i 's are more likely to be positive when one of the explanatory variables is at higher values, then all of the estimators will be biased.
Brand: Quizplus
Rating: 5.0 (25 reviews)

Question

Quizplus · Accepted Answer

When the explanatory variables are at higher values, the u_i's are more likely to be positive. This means that the expected value of the u_i's is not zero, which will bias the estimators.

If the Ui's Are More Likely to Be Positive When

If the U_i's Are More Likely to Be Positive When