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1Suppose you are estimating the demand forgold in a given year, but you forget to include the price of gold as one ofyour explanatory variables.
What, ifany, effect would leaving out the price of gold have on the coefficient foraverage disposable income?
Explain youranswer.
2Suppose you are estimating daily attendance at outdoor concerts, but youforget to include the probability of rain during the concert as one of yourexplanatory variables.
What, if any,effect would this omission have on the coefficient for a weekend dummy variable(=1 if concert is on a weekend)?
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关键词：explanatory coefficient Probability Estimating attendance attendance concerts omission outdoor include