Omitted Variable Bias

question 2

Multiple Choice

Omitted variable bias

• A)will always be present as long as the regression R² < 1.
• B)is always there but is negligible in almost all economic examples.
• C)exists if the omitted variable is correlated with the included regressor but is not a determinant of the dependent variable.
• D)exists if the omitted variable is correlated with the included regressor and is a determinant of the dependent variable.

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Definitions:

Semantic Network

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Highly detailed, exceptionally vivid 'snapshot' of the moment and circumstances in which a piece of surprising and consequential (or emotionally arousing) news was heard.