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Endogeneity of an Independent Variable Presents a Challenge Because

Question 25

Multiple Choice

Endogeneity of an independent variable presents a challenge because


A) two-stage least squares is biased and inconsistent.
B) OLS does not properly weight the data for the undue influence of outliers.
C) OLS does not account for the autoregressive structure of the error term.
D) OLS is unable to isolate the true marginal effect of endogenous independent variable.

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