Solution-Estimate a regression model

Estimate a regression model

Reference no: EM131131766

To estimate the partial effect of X₂ on y while X₃ is kept constant, we need to estimate a regression model like y = β₁+β₂x₂+β₃x₃+u. Some students find this counter intuitive: if we're keeping x₃ constant, why should it be in our model at all? Explain intuitively why this is the right thing to do.

Reference no: EM131131766

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Estimate a regression model

Reference no: EM131131766

Reference no: EM131131766

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