The Following OLS Assumption Is Most Likely Violated by Omitted

question 44

Multiple Choice

The following OLS assumption is most likely violated by omitted variables bias:

• A)E(u_i X_i)= 0
• B)(X_i, Y_i)i=1,..., n are i.i.d draws from their joint distribution
• C)there are no outliers for X_i, u_i
• D)there is heteroskedasticity

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