When There Are Omitted Variables in the Regression, Which Are

question 1

Multiple Choice

When there are omitted variables in the regression, which are determinants of the dependent variable, then

• A)you cannot measure the effect of the omitted variable, but the estimator of your included variable(s)is (are)unaffected.
• B)this has no effect on the estimator of your included variable because the other variable is not included.
• C)this will always bias the OLS estimator of the included variable.
• D)the OLS estimator is biased if the omitted variable is correlated with the included variable.

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