Solved

In Which of the Following Will Omitted Variable Bias Be β\beta

Question 13

Multiple Choice

In which of the following will omitted variable bias be the most severe? Treat X2 as the omitted variable in a bivariate model of
Yi = β\beta 0 + β\beta 1X1i + ε\varepsilon i


A) X2 is weakly related to X1, but strongly related to Y.
B) X2 is unrelated to X1, but strongly related to Y.
C) X2 is strongly related to X1, but not related to Y.
D) X2 is strongly related to X1 and strongly related to Y.

Correct Answer:

verifed

Verified

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

Related Questions

Q8: If the errors are not homoscedastic and

Q9: Which assumption is not necessary for

Q10: We derive the B1hat equation by setting

Q11: Derive the equation for attenuation bias due

Q12: <sub>9.</sub><sub> </sub>Suppose that X<sub>1</sub> is measured

Q14: Suppose we omit X<sub>2</sub> from the

Q15: Derive the equation for the omitted variable

Q16: A single poorly measured independent variable will

Q17: Since a lot of times we do

Q18: <sub>10.</sub><sub> </sub>Suppose that X<sub>1</sub> is measured