The OLS Estimators of the Coefficients in Multiple Regression Will

question 52

Multiple Choice

The OLS estimators of the coefficients in multiple regression will have omitted variable bias

• A)only if an omitted determinant of Y_i is a continuous variable.
• B)if an omitted variable is correlated with at least one of the regressors, even though it is not a determinant of the dependent variable.
• C)only if the omitted variable is not normally distributed.
• D)if an omitted determinant of Y_i is correlated with at least one of the regressors.

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Definitions:

Financial Accounting Information

The collection of financial data and statements that companies use to report their financial performance to external parties.

Creditor

An individual or institution that lends money or extends credit, expecting repayment in the future.

Basic Accounting Equation

The Basic Accounting Equation is the foundational principle of double-entry bookkeeping, stating that Assets = Liabilities + Equity, maintaining the balance of a company's financial statements.

Equipment

The tangible assets used in the operation of a business to perform specific tasks, excluding real estate and facilities.