AppliedNumeric answer

The true model is $y = x_1 + 2x_2 + \varepsilon$ . You regress $y$ on $x_1$ alone, and the slope of $x_2$ on $x_1$ is $0.5$ . What coefficient on $x_1$ do you estimate, in expectation?

Answer with a number. Fractions, powers and expressions like 23/6 or C(52,5) are read correctly in practice.

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Identification: endogeneity, instruments and panel methods

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Citadel, Two Sigma, AQR

The true model is y=x1+2x2+εy = x_1 + 2x_2 + \varepsilony=x1​+2x2​+ε. You regress yyy on x1x_1x1​ alone, and the slope of x2x_2x2​ on x1x_1x1​ is 0.50.50.5. What coefficient on x1x_1x1​ do you estimate, in expectation?

More regression and econometrics questions

The true model is $y = x_1 + 2x_2 + \varepsilon$ . You regress $y$ on $x_1$ alone, and the slope of $x_2$ on $x_1$ is $0.5$ . What coefficient on $x_1$ do you estimate, in expectation?