If the Data-Generating Process You Are Working with Has a Population

question 18

Multiple Choice

If the data-generating process you are working with has a population parameter that is not identified it will be the case that:

• A) you will need more data to get a precise estimate.
• B) you will always need an instrumental variable to get an unbiased estimate.
• C) a fixed effect model will be required.
• D) None of the answers is correct.

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Definitions:

Nominal Data

Information grouped into categories without an inherent numerical value or order, such as colors or gender.

Ordinal Data

Data classified into categories within a specific order or ranking, but without meaningful mathematical differences between those rankings.

Type II Error

The error that occurs when the null hypothesis is not rejected when it is actually false, also known as a false negative result.

Type I Error

Mistakenly refusing a true null hypothesis, popularly known as a "false positive."