Multiple Choice
A regression model with three independent variables was constructed to analyze certain data: y = β0 + β1X1 + β3X3 + β2X2 + ε.But while estimating the coefficient,the following regression model was mistakenly used: y = α0 + α1x1 + μ.From the second formula,which of the following can be deduced to be affecting the regression model?
A) specification bias
B) autocorrelation
C) heteroscedasticity
D) sampling error
Correct Answer:
Verified
Correct Answer:
Verified
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