Multiple Choice
At a mathematical level, if the two conditions for omitted variable bias are satisfied, then
A) E(ui | X1i, X2i,..., Xki) ? 0.
B) there is perfect multicollinearity.
C) large outliers are likely: X1i, X2i,..., Xki and Yi and have infinite fourth moments.
D) (X1i, X2i,..., Xki,Yi) , i = 1,..., n are not i.i.d. draws from their joint distribution.
Correct Answer:

Verified
Correct Answer:
Verified
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