If the Estimates of the Coefficients of Interest Change Substantially

question 45

Multiple Choice

If the estimates of the coefficients of interest change substantially across specifications,

• A)then this can be expected from sample variation.
• B)then you should change the scale of the variables to make the changes appear to be smaller.
• C)then this often provides evidence that the original specification had omitted variable bias.
• D)then choose the specification for which your coefficient of interest is most significant.

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Definitions:

National Supermarket Chain

A large retail chain that operates multiple supermarket locations across an entire country, offering a wide range of food and household products.

Competition-oriented Pricing

A pricing strategy where the prices are set based on competitors' prices rather than solely on production costs or consumer demand.

Private Brands

Products that are owned by a retailer or a supplier but are sold under a retailer's brand.

Penetration Pricing

A pricing strategy where the price of a product is initially set low to rapidly reach a wide fraction of the market and stimulate product adoption.