The Following OLS Assumption Is Most Likely Violated by Omitted $E \left( u _ { i } \mid X _ { i } \right) = 0$

question 28

Short Answer

The following OLS assumption is most likely violated by omitted variables bias: a. $E \left( u _ { i } \mid X _ { i } \right) = 0$ .
b. $\left( X _ { i } , Y _ { i } \right) , i = 1 , \ldots , n$ are i.i.d draws from their joint distribution.
c. there are no outliers for $X _ { i } , u _ { i }$ .
d. there is heteroskedasticity.

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