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**Unformatted text preview: **ˆ β 1 in the regression of ahe on female? 5. How can you ﬁx this problem? 6. Check whether your predicted direction of bias matches the results you obtain from Stata? 7. Suppose we were interested in determining the eﬀects of smoking during pregnancy on infant health, as measured by birth weight. Suppose however that in estimating the relationship between birth weight and smoking we do not observe family income, which we believe to be positively related to birth weight. What is the sign of the bias on the coeﬃcient on smoking? 1...

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