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Author Question: When there are omitted variables in the regression, which are determinants of the dependent ... (Read 147 times)

mcmcdaniel

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on: Jun 29, 2018
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.

Question 2

In the probit model Pr(Y = 1 = (0 + 1X),
 
  A) is not defined for (0).
  B) is the standard normal cumulative distribution function.
  C) is set to 1.96.
  D) can be computed from the standard normal density function.


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tandmlomax84

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Reply #1 on: Jun 29, 2018
Answer to Question 1

Answer: D

Answer to Question 2

Answer: B


mcmcdaniel

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Reply #2 on: Jun 29, 2018
Thank you :)


tandmlomax84

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Reply #3 on: Jun 29, 2018
Happy to help you


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