How Does Including an Irrelevant Variable in a Regression Model

question 17

Multiple Choice

How does including an irrelevant variable in a regression model affect the estimated coefficient of other variables in the model?

• A)they are biased downward and have smaller standard errors
• B)they are biased upward and have larger standard errors
• C)they are biased and the bias can be negative or positive
• D)they are unbiased but have larger standard errors

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