You have estimated a number of regression models:

The coefficient on Income declined as we went from models (1) to (2) to (3). Consider the statements below and select those that are correct. (Multiple answers allowed)

Question

You have estimated a number of regression models:

The coefficient on  Income  declined as we went from models (1) to (2) to (3). Consider the statements below and select those that are correct. (Multiple answers allowed)

Answer

The coefficient on  Income  fell going from (2) to (3) because  Income  and  Education  are positively correlated so some of the effect of  Income  in (2) was due to  Education  changing instead of being held constant.

Answer

The coefficient on  Income  fell going from (1) to (2) because  Income  and  Age  are positively correlated so some of the effect of  Income  in (1) was due to  Age  changing instead of being held constant.

Answer

The coefficient on  Income  fell going from (2) to (3) because  Age  and  Education  are positively correlated so some of the effect of  Income  in (2) was due to  Education  changing instead of being held constant.

Answer

The coefficient on  Income  fell going from (1) to (2) because  Age  and  Education  are positively correlated so some of the effect of  Income  in (1) was due to  Age  changing instead of being held constant.

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You have estimated a number of regression models: The coefficien...

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