Consider the Multiple Regression Model with Two Regressors X1 and X2,where

question 33

Multiple Choice

Consider the multiple regression model with two regressors X1 and X2,where both variables are determinants of the dependent variable.When omitting X2 from the regression,then there will be omitted variable bias for

• A)if X1 and X2 are correlated
• B)always
• C)if X2 is measured in percentages
• D)if X2 is a dummy variable

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Definitions:

Liabilities Section

Part of a balance sheet that lists what a company owes, including debts, loans, and other financial obligations.

Classified Balance Sheet

A financial statement that separates a company's assets and liabilities into current and long-term categories, providing a detailed snapshot of the company's financial position.

Account Balances

The total amount of money in an account, calculated as the sum of all credits minus the sum of all debits.

Interest-Bearing Note

A debt instrument that pays interest to the holder until it reaches its maturity date.