Linear Modelinghard
0:00.0

If the model is Yi=β0+β1Xi+ϵiY_i = \beta_0 + \beta_1 X_i + \epsilon_i and the true relationship is Yi=β0+β1Xi+β2Xi2+ϵiY_i = \beta_0 + \beta_1 X_i + \beta_2 X_i^2 + \epsilon_i, what happens to the OLS estimator β^1\hat{\beta}_1?