When There Are Omitted Variables in the Regression, Which Are

question 1

Multiple Choice

When there are omitted variables in the regression, which are determinants of the dependent variable, then

• A)you cannot measure the effect of the omitted variable, but the estimator of your included variable(s)is (are)unaffected.
• B)this has no effect on the estimator of your included variable because the other variable is not included.
• C)this will always bias the OLS estimator of the included variable.
• D)the OLS estimator is biased if the omitted variable is correlated with the included variable.

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Definitions:

Behaviourally Anchored Rating Scale

A performance appraisal method that uses specific examples of behavior to evaluate the performance of employees instead of relying on more subjective measures.

Bona Fide

Means genuine, real, or without the intention of deceit; often used to describe authentic documents or sincere intentions.

Sexual Discrimination

Unfair treatment of individuals based on their sex or gender, leading to disparities in opportunities and outcomes.

Age Discrimination

Unfair treatment of individuals based on their age, particularly in employment practices.