Author Question: When your multiple regression function includes a single omitted variable regressor, then A) use ... (Read 400 times)

jerry coleman · **on:** Jun 29, 2018

When your multiple regression function includes a single omitted variable regressor, then

A) use a two-sided alternative hypothesis to check the influence of all included variables.
B) the estimator for your included regressors will be biased if at least one of the included variables is correlated with the omitted variable.
C) the estimator for your included regressors will always be biased.
D) lower the critical value to 1.645 from 1.96 in a two-sided alternative hypothesis to test the significance of the coefficients of the included variables.

Question 2

Consider a regression with two variables, in which X1i is the variable of interest and X2i is the control variable. Conditional mean independence requires

A) E(uiX1i, X2i) = E(uiX2i)
B) E(uiX1i, X2i) = E(uiX1i)
C) E(uiX1i) = E(uiX2i)
D) E(ui) = E(uiX2i)