Answer the following question using the excel spreadsheet attached. 1. Consider the relationship between BusLoansTighter and BusLoansDelin if I were to consider a regression of the form: BusLoansDelin ＝ B0 + B1* BusLoansTighter Use the data in the tab BUsLoansData2. a.What type of value would I expect for B1, positive or negative? Fully explain why use the term adverse selection appropriately in your explanation.
