When There Are Omitted Variables in the Regression, Which Are

question 1

Multiple Choice

When there are omitted variables in the regression, which are determinants of the dependent variable, then

• A)you cannot measure the effect of the omitted variable, but the estimator of your included variable(s)is (are)unaffected.
• B)this has no effect on the estimator of your included variable because the other variable is not included.
• C)this will always bias the OLS estimator of the included variable.
• D)the OLS estimator is biased if the omitted variable is correlated with the included variable.

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Definitions:

Sensory Adaptation

The adaptation process of sensory receptors becoming duller in response to stimuli that stays the same over time.

Stimulus Generalization

The process by which a response originally elicited by a specific stimulus is elicited by similar stimuli.

Spontaneous Recovery

The reappearance of a previously extinguished response after a period of no exposure to the conditioned stimulus.

Instinctive Drift

The phenomenon whereby an animal's learned behavior reverts to its natural instincts over time, often interfering with conditioned response training.