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monsmatglad
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Say one has a regression result (ols) with significant coefficients for all independent variables. Then a new variable (Z) is added. This new variable is either something that reveals a spurious relationship among one of the initially included variables (x) and the dependent variable (y), or represents an effect that is "between" the independent variable (z) and the dependent (z) - an indirect effect. Will both these situations cause the size (and significance) of the independent variable (x) to decline? I have a statistics course, and from what I remember, my lecturer told me that adding an additional independent variable which results in one of the original variables to have a smaller coefficient, is a sign of either an indirect effect or a spurious relation. Is this correct?
Mons
Mons