Monthly Archives: April 2018

Omitted Variable Bias: Violation of CLRM–Assumption 3: Explanatory Variables must be exogenous

One reason why the omitted variable leads to biased estimates is that omitting a relevant variable violates assumption 3 of the necessary assumptions of the classical regression model that states that all explanatory variables must be exogenous, i.e. From this … Continue reading

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Linear Regression in Julia

Julia presents various ways to carry out linear regressions. One easy way is to use the lm() function of the GLM package. In this post I will present how to use the lm() and run OLS on the following model

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