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Independent variables in a regression

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Reference no: EM131687105

1. Explain what using a 5% significance level implies? Your answer should include an explanation of what a "type 1" error is, and how it is related.

2. Explain how including irrelevant independent variables in a regression affects your OLS estimates. Use a simplified model of two independent variables to highlight your explanation.

Reference no: EM131687105

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