What Is the "Omitted Variable" Problem in Determining Cause and Effect

question 212

Multiple Choice

What is the "omitted variable" problem in determining cause and effect?

• A)It is a problem that arises when an insignificant variable is given too much weight in an economic analysis leading to skewed conclusions about cause and effect.
• B)It is a problem that arises when a significant variable is not given enough weight in an economic experiment leading to skewed conclusions about cause and effect.
• C)It is a problem that arises when an insignificant economic variable that should have been omitted is included in an economic experiment leading to false conclusions about cause and effect.
• D)It is a problem that arises when an economic variable that affects other variables is omitted from an analysis and its omission leads to false conclusions about cause and effect.

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Definitions:

Governor Cut-Out

A mechanism designed to limit the speed of a vehicle or machine by preventing fuel delivery or ignition at a preset speed.

Spring Brake Chamber

A component in air brake systems of vehicles that uses spring force to apply the brakes, particularly for parking or emergency purposes.

Braking Force

The force applied by a braking system to slow down or stop a vehicle.

Pneumatic Force

The power or force exerted by compressed air in various mechanical applications.