The Probability Limit of the OLS Estimator in the Case

question 51

Essay

The probability limit of the OLS estimator in the case of omitted variables is given in your text by the following formula: Give an intuitive explanation for two conditions under which the bias will be small.

---

Definitions:

Amygdala

A part of the brain's limbic system involved in emotion regulation, emotional learning, and the formation of memories associated with emotional events.

Convolutions

The folds or ridges on the brain's surface, increasing the brain's surface area and its ability to process information.

Fissures

Deep grooves or splits in tissues or organs, including those found in the brain which separate different lobes or areas.

Cortex

The outermost layer of the brain involved in complex functions such as perception, thought, and decision-making.