When Your Multiple Regression Function Includes a Single Omitted Variable

question 16

Multiple Choice

When your multiple regression function includes a single omitted variable regressor, then

• A)use a two-sided alternative hypothesis to check the influence of all included variables.
• B)the estimator for your included regressors will be biased if at least one of the included variables is correlated with the omitted variable.
• C)the estimator for your included regressors will always be biased.
• D)lower the critical value to 1.645 from 1.96 in a two-sided alternative hypothesis to test the significance of the coefficients of the included variables.

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Definitions:

Hyperopic

Pertaining to farsightedness, a condition where distant objects are seen more clearly than close ones due to the light rays focusing behind the retina.

Astigmatism

A common vision condition caused by an irregularly shaped cornea, resulting in blurred or distorted vision.

Fovea

A tiny indent in the eye's retina where vision is the sharpest.

Macula Lutea

A small, yellowish central area of the retina that is rich in cones and where visual acuity (sharpness) is highest.