Multiple Choice
Omitted variable bias occurs when one does not include
A) an independent variable that is correlated with the dependent variable only.
B) an independent variable that is correlated with the dependent variable and an included independent variable.
C) an independent variable that is correlated with an included independent variable only.
D) a dependent variable that is correlated with an included independent variable.
Correct Answer:
Verified
Correct Answer:
Verified
Q20: Suppose that you estimate the sample
Q21: What is omitted variable bias? Why is
Q22: The RESET test is used to<br>A)test for
Q23: Suppose that you estimate the regression
Q24: One can deal with missing data by<br>A)making
Q26: One can deal with missing data by<br>A)dropping
Q27: What is the "eye test"? Why is
Q28: Potential inclusion of irrelevant variables is best
Q29: Omitted variable bias is a potential problem
Q30: Suppose you estimate restaurant sales as