Question

We discussed in the lecture about a study in Sydney that finds that a 1% increase in humidity is associated with a 7.7% increase in COVID-19 infections. Let's assume this finding is based on a single linear regression. Suppose more humid suburbs are close to the sea (e.g., Bondi) and are more crowded. Also, suppose crowdedness can cause an increase in COVID-19 infections. Which of the following is correct? a. There is no omitted variable bias. b. We can interpret the result from the study as a causal effect of humidity on infections. c. The study tends to overestimate the causal effect of humidity on infections. d. The study tends to underestimate the causal effect of humidity on infections.

          We discussed in the lecture about a study in Sydney that finds that a 1% increase in humidity is associated with a 7.7% increase in COVID-19 infections. Let's assume this finding is based on a single linear regression. 

Suppose more humid suburbs are close to the sea (e.g., Bondi) and are more crowded. Also, suppose crowdedness can cause an increase in COVID-19 infections. Which of the following is correct?

a. There is no omitted variable bias.
b. We can interpret the result from the study as a causal effect of humidity on infections.
c. The study tends to overestimate the causal effect of humidity on infections.
d. The study tends to underestimate the causal effect of humidity on infections.

Added by Courtney J.

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