Explain what is meant by (a) an omitted variable and (b) an irrelevant variable. Explain the consequences

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Explain what is meant by

(a) an omitted variable and

(b) an irrelevant variable. Explain the consequences of omitted and irrelevant variables for the properties of the least squares estimator.

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Principles Of Econometrics

ISBN: 9781118452271

5th Edition

Authors: R Carter Hill, William E Griffiths, Guay C Lim

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Question Posted: Mar 30, 2024 12:01 AM

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Explain what is meant by (a) an omitted variable and (b) an irrelevant variable. Explain the consequences

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a An omitted variable refers to a variable that is relevant to a particular analysis but has not been included in the model When conducting statistica...View the full answer

Principles Of Econometrics

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