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Suppose that a score on a final exam, score, depends on classes attended (attend) and unobserved factors that affect exam performance (such as student ability)
Suppose that a score on a final exam, score, depends on classes attended (attend) and unobserved factors that affect exam performance (such as student ability). Then
score = B0 + B1 *attend + u
When would you expect this model to satisfy equation: E(u | x) = E(u) ?
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