A Proxy Variable Is a Variable Used in a Regression

question 31

Multiple Choice

A proxy variable is a variable used in a regression equation in order to:

• A) report the r-squared value appropriately.
• B) make the adjustment for the adjusted r-squared.
• C) proxy for a confounding factor in an attempt to alleviate the endogeneity problem.
• D) improve the standard errors on the treatment effect.

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