Solved

Which of the Following Is a Drawback of Including Proxy

Question 12

Multiple Choice

Which of the following is a drawback of including proxy variables in a regression model?


A) It leads to misspecification analysis.
B) It reduces the error variance.
C) It increases the error variance.
D) It exacerbates multicollinearity.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions