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How Does Omitting a Relevant Variable from a Regression Model

Question 20

Multiple Choice

How does omitting a relevant variable from a regression model affect the estimated coefficient of other variables in the model?


A) they are biased downward and have smaller standard errors
B) they are biased upward and have larger standard errors
C) they are biased and the bias can be negative or positive
D) they are unbiased but have larger standard errors

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