An Omitted Variable Bias Problem Occurs When

question 13

Multiple Choice

An omitted variable bias problem occurs when:

• A) We fail to include an independent variable that is not correlated with the dependent variable but is correlated with the main independent variable of interest.
• B) We fail to include an independent variable that is correlated with the main independent variable of interest and the error term.
• C) We fail to include the main independent variable of interest in the model.
• D) We fail to include an independent variable that is correlated with the error term but is not correlated with the main independent variable of interest.

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Definitions:

Aggravated Assault

is a physical attack on someone that results in serious bodily injury, often involving the use of a weapon or other means to increase harm.

Deadly Weapon

An object that can cause death or serious bodily injury, either designed for that purpose or used in a way that can inflict harm.

Capital Punishment

A legal penalty where a person is put to death by the state as a punishment for a crime.

Deterrent

A factor or consideration that discourages certain behaviors or actions through the fear of consequences.