You Can Limit the Problem of Potential Spurious Correlation by

question 7

Multiple Choice

You can limit the problem of potential spurious correlation by

• A)estimating the regression both with and without the suspect independent variable and comparing the R-squared for the two regressions.
• B)thinking carefully about the chose model specification to rule out potential spurious correlations.
• C)including interaction terms between the suspect independent variable and the remaining independent variables and testing for the joint significance of those terms.
• D)including a dummy variable for the suspect independent variable and testing for the individual significance of that term.

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