This topic contains a solution. Click here to go to the answer

Author Question: What is meant by the term omitted variable in correlation analysis? Explain with an example. What ... (Read 113 times)

elizabeth18

  • Hero Member
  • *****
  • Posts: 559
What is meant by the term omitted variable in correlation analysis? Explain with an example.
 
  What will be an ideal response?

Question 2

If monetary equilibrium were to occur
 
  A) inflation would not occur.
  B) deflation would not occur.
  C) the price level would be stable.
  D) all of the above would be true.
  E) none of the above would be true.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mcabuhat

  • Sr. Member
  • ****
  • Posts: 344
Answer to Question 1

An omitted variable is something that has been left out of a study which, if included, would explain why two variables are correlated. For example, it is seen that the rate of employees quitting is lower in firms that pay higher wages. Thus, a conclusion can be drawn that higher wages result in lower quit rates. But there are many other variables that might influence the quit rates apart from wages such as employee benefits provided by the firm, age of employees, work-life balance, etc. These variables that have been left out are omitted variables and if included in the study would better explain the quit rates of firms.

Answer to Question 2

D




elizabeth18

  • Member
  • Posts: 559
Reply 2 on: Jun 29, 2018
:D TYSM


ktidd

  • Member
  • Posts: 319
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

For a complete list of videos, visit our video library