All of the Following Are Potential Problems Associated with Missing

question 31

Multiple Choice

All of the following are potential problems associated with missing data except

• A)dropping observations with missing data will bias the estimated coefficients if the missing data is due to selection bias.
• B)the number of observations goes down.
• C)dropping the independent variables that have missing data will typically bias the estimated coefficients.
• D)missing data always increases the estimated standard errors.

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Definitions:

Redeemed

The act of repaying or buying back something, such as repaying a loan, fulfilling a promise, or converting a financial security.

Unamortized Premium

The portion of the bond premium that has not yet been expensed to interest over the life of the bond.

Straight-Line Method

A depreciation technique which evenly spreads the cost of a fixed asset over its useful life.

Effective Interest Rate Method

A method of calculating the amortized cost of a bond and the periodic interest expense over the life of the bond.