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:

Neutral Variation

Neutral variation involves genetic differences among individuals that do not confer a selective advantage or disadvantage in terms of survival or reproduction.

Genetic Variation

The diversity in gene frequencies within a population, resulting from mutations, genetic recombination, and other sources.

Geographic Variation

Genetic differences that may exist among different populations within the same species. See cline for an example of one type of geographic variation

Sickle Cell Anemia

A genetic blood disorder characterized by red blood cells that assume an abnormal, rigid, sickle shape, leading to various complications.