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If You Had to Either Include an Irrelevant Variable or Omit

Question 7

Multiple Choice

If you had to either include an irrelevant variable or omit a relevant variable,you would prefer


A) including an irrelevant variable over omitting a relevant variable because omitting a relevant variable leads to biased estimates.
B) including an irrelevant variable over omitting a relevant variable because omitting a relevant variable leads to the standard errors to increase.
C) omitting a relevant variable over including an irrelevant variable because omitting a variable does not affect the estimated coefficients.
D) omitting a relevant variable over including an irrelevant variable because including an irrelevant variable does not lead to biased estimates.

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