Sample Selection Bias

question 5

Multiple Choice

Sample selection bias

• A)occurs when a selection process influences the availability of data and that process is related to the dependent variable.
• B)is only important for finite sample results.
• C)results in the OLS estimator being biased, although it is still consistent.
• D)is more important for nonlinear least squares estimation than for OLS.

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Definitions:

Credits

Accounting entries that represent an increase in liabilities or revenues, or a decrease in assets or expenses.

Adjusting Entries

Adjusting entries are journal entries made in an accounting period's end to allocate income and expenditures to the period in which they actually occurred.

Chart of Accounts

A structured list detailing a company's financial accounts, categorized to facilitate the organization and reporting of financial transactions.

Accounting Period

A specific time frame in which financial activities are recorded and reported, commonly a year or a quarter.