Ordinary Least Squares Estimation Is Subject to Heterogeneity Bias If

question 2

Multiple Choice

Ordinary least squares estimation is subject to heterogeneity bias if _____.

• A)the regression model exhibits heteroskedasticty
• B)the unobserved effect is correlated with the observed explanatory variables
• C)the regression model includes a lagged dependent variable
• D)the explanatory variables do not change over time

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Definitions:

Environmental Practices

Activities and policies implemented by individuals, businesses, or governments aimed at minimizing negative impacts on the natural environment.

Human Resource Planning

The process of predicting and planning for future HR needs to ensure the organization has the right number of employees with the right skills at the right time.

Compensation Policies

Guidelines that dictate how employees are rewarded for their work, including wages, salaries, bonuses, and benefits.

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An approach that involves planning and decision-making which focuses on long-term goals and the overall direction of an organization.