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What is the direction of the bias

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Suppose that population follows: final=B0+ B1attend+B2study +u but instead you estimate that final=b0+ b1attend, where b0 is the estimated intercept and b1 is the estimated slope. Suppose that b1>0. Moreover, you know that there is a positive correlation between study and final and a positive correlation between study and attend. Then what is the direction of the bias of your estimated b1? Is it upwards or downwards? Show algebraically also that your estimate for B1 is not unbiased and consistent.

Reference no: EM132364754

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