When a Set of Variables with Exact Collinearity Is Included

question 8

Multiple Choice

When a set of variables with exact collinearity is included in an econometric model coefficient estimates are

• A)undefined
• B)unbiased
• C)biased upward
• D)biased,but the direction is unclear

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Definitions:

PEST Analysis

An analytical framework used to assess external factors affecting a business's strategy: Political, Economic, Social, and Technological.

Political Factors

Elements related to government policies, political stability, and legislative changes that can impact an organization's operation and strategic decisions.

International Labour Organization

A United Nations agency that sets international labor standards and promotes rights at work.

Rights Of Workers

Refers to the legal and ethical entitlements of employees in the workplace, covering aspects such as fair pay, safe working conditions, and freedom from discrimination.