An Omitted Variable Bias Problem Occurs When

Multiple Choice

An omitted variable bias problem occurs when:

A) We fail to include an independent variable that is not correlated with the dependent variable but is correlated with the main independent variable of interest.
B) We fail to include an independent variable that is correlated with the main independent variable of interest and the error term.
C) We fail to include the main independent variable of interest in the model.
D) We fail to include an independent variable that is correlated with the error term but is not correlated with the main independent variable of interest.