Which of the Following Can Cause Specification Bias in a Regression

question 111

Multiple Choice

Which of the following can cause specification bias in a regression model?

• A)omission of variables uncorrelated to the independent variables
• B)omission of variables correlated to the independent variables
• C)inclusion of autocorrelated variables
• D)inclusion of an error term

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Definitions:

Unexpected Situations

Events or circumstances that arise without warning, often requiring immediate attention or adaptation.

Tuning

Tuning involves making adjustments to a system, process, or instrument to improve its performance, accuracy, or efficiency.

Response Patterns

The systematic ways individuals or groups react to stimuli or situations, often studied in psychology and marketing to predict behaviors.

Nadler-Tushman Model

A framework used in the field of organizational dynamics, it outlines how various aspects of an organization interact and how changes in one area can lead to changes in others.