Explanatory variables in the regression

Reference no: EM131009388

A modeler has omitted an explanatory variable that is related to the response but not correlated with the explanatory variables in the regression. The modeler's regression has se = 135. The explanatory variable has s = 15 and slope b = 3. How will this omitted vari- able affect the residuals from the modeler's regression?

Why is it useful to identify unbalanced categorical variables before using them in a regression model?

Reference no: EM131009388

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