Exclusion of a Relevant Variable from a Multiple Linear Regression

question 1

Multiple Choice

Exclusion of a relevant variable from a multiple linear regression model leads to the problem of _____.

• A)misspecification of the model
• B)multicollinearity
• C)perfect collinearity
• D)homoskedasticity

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Definitions:

Lobbying

The act of attempting to influence the decisions of legislators and officials in the government, often by special interest groups or lobbyists representing business, labor, or other entities.

Adverse Legislation

Legislation that is considered unfavorable or detrimental to the interests of a specific group or the public.

First Amendment

An amendment to the U.S. Constitution that prohibits the making of any law infringing on the freedom of speech, the press, religion, assembly, and petition.

Lobbying

The act of attempting to influence decisions made by officials in the government, most often legislators, by individuals or more commonly by lobby groups.