The OLS estimators of the coefficients in multiple
regression will have omitted variable bias:
a.
only if an omitted determinant of Yi is a continuous
variable.
b.
if an omitted varible is correlated with at least one
of the regressors, even though it is not a determinannt of the
dependent variable.
c.
only if the omitted variable is not normally
distributed.
d.
if an omitted determinant of Yi is
correlated with at least one of the regressors.
e.
if the degree of freedom is less than 50
The Ols Estimators Of The Coefficients In Multiple Regression Will Have Omitted Variable Bias A Only If An Omitted Det 1 (78.55 KiB) Viewed 76 times
Consider the following regression model Y = Bo+B1X1 + B2X2+ u where E[u|X1, X2]=0. Suppose X1 and X2 are highly (but not perfectly) correlated. Then, O a. OLS estimators are biased. O b.OLS estimators are not consistent. C. OLS estimators will have large standard errors. O d. One of X1 X2, or the constant should be dropped. e. Be cannot be interpreted as the population intercept.
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