Multiple Choice
Which of the following are associated with larger omitted variable biases?
A) The dependent variable is measured with error.
B) The relationship between the included and excluded variables is weak.
C) The relationship between the included and excluded variables is strong.
D) The relationship between the excluded variable and the dependent variable is weak.
Correct Answer:
Verified
Correct Answer:
Verified
Q8: Explain and contrast the consequences of having
Q9: By adding more independent variables into our
Q10: If we add more independent variables into
Q11: Explain the omitted variable bias problem, and
Q12: Adding more control variables will always increase
Q14: We necessarily do not have an omitted
Q15: Adding more independent variables can reduce multicollinearity.
Q16: What should we do when we have
Q17: Explain the challenges in the model specification
Q18: Measurement error in the dependent variable causes