If You Had to Either Include an Irrelevant Variable or Omit

question 7

Multiple Choice

If you had to either include an irrelevant variable or omit a relevant variable,you would prefer

• A)including an irrelevant variable over omitting a relevant variable because omitting a relevant variable leads to biased estimates.
• B)including an irrelevant variable over omitting a relevant variable because omitting a relevant variable leads to the standard errors to increase.
• C)omitting a relevant variable over including an irrelevant variable because omitting a variable does not affect the estimated coefficients.
• D)omitting a relevant variable over including an irrelevant variable because including an irrelevant variable does not lead to biased estimates.

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Definitions:

Principle of Specialization

The organizational principle suggesting that dividing tasks and responsibilities among individuals or groups boosts efficiency and expertise by allowing them to focus on specific facets of their work.

Theory Y

A management concept that assumes employees are self-motivated, seek responsibility, and are creative problem solvers.

Job Autonomy

The extent to which a role allows a worker the autonomy to plan their tasks and decide on the methods to accomplish them.

Democratic Manager

A managerial style characterized by involving employees in decision-making, valuing their input, and making decisions by consensus.