Omitted Variable Bias

question 15

Multiple Choice

Omitted variable bias

• A)will always be present as long as the regression R2 < 1.
• B)is always there but is negligible in almost all economic examples.
• C)exists if the omitted variable is correlated with the included regressor but is not a determinant of the dependent variable.
• D)exists if the omitted variable is correlated with the included regressor and is a determinant of the dependent variable.

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Definitions:

Interpretation

The process of explaining, conceptualizing, or understanding meanings or patterns in data, events, or observations.

Conditional Positive Regard

A concept where acceptance and love from others depend on fulfilling certain conditions or expectations, as opposed to unconditional positive regard.

Genuineness

The quality of being authentic, sincere, and open in one's expressions or actions.

Empathic Understanding

The ability to accurately understand and share the feelings of another person.