Ordinary Least Squares Estimation Is Subject to Heterogeneity Bias If

question 2

Multiple Choice

Ordinary least squares estimation is subject to heterogeneity bias if _____.

• A)the regression model exhibits heteroskedasticty
• B)the unobserved effect is correlated with the observed explanatory variables
• C)the regression model includes a lagged dependent variable
• D)the explanatory variables do not change over time

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Definitions:

Gift

An item given to someone without the expectation of payment or anything in return.

Mislaid Property

Items that are intentionally placed somewhere by the owner but then forgotten, differentiating from lost or abandoned property.

True Owner

The legitimate or actual owner of an asset or property.

Documents

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