The Random Error Term ________ the Effects of ________ Influences

question 44

Multiple Choice

The random error term ________ the effects of ________ influences on the dependent variable that are not included as explanatory variables.

• A)captures; observed
• B)ignores; unobserved
• C)ignores; observed
• D)captures; unobserved

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Definitions:

Premise

A previous statement or proposition from which another is inferred or follows as a conclusion.

Spending Habits

Patterns or tendencies in how an individual or group uses their financial resources.

Earning

The income obtained from work (wages), investments, business, or other sources, typically measured over a certain period of time.

Conclusion

Conclusion is the final part of something, or in logic, the statement that logically follows from the premises in an argument.