At a Mathematical Level,if the Two Conditions for Omitted Variable

question 58

Multiple Choice

At a mathematical level,if the two conditions for omitted variable bias are satisfied,then

• A)E(ui X1i,X2i,... ,Xki)≠ 0.
• B)there is perfect multicollinearity.
• C)large outliers are likely: X1i,X2i,... ,Xki and Yi and have infinite fourth moments.
• D)(X1i,X2i,... ,Xki,Yi),i = 1,... ,n are not i.i.d.draws from their joint distribution.

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Definitions:

Representativeness Heuristic

A cognitive shortcut used in decision making, where the likelihood of an object belonging to a category is assessed based on how similar it is to one's conception of that category.

Conjunction Fallacy

A logical fallacy where people incorrectly judge the probability of the conjunction of two events to be more likely than the probability of a single one of those events.

Subcategory

A more specific grouping within a larger category, often distinguished by particular characteristics.

Semantic Slanting

The deliberate choice of words to create specific emotional responses or to subtly influence perception.