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If the error term is correlated with any of the independent variables (that is, there is relevant omitted variable correlated with and independent variable), the

If the error term is correlated with any of the independent variables (that is, there is relevant omitted variable correlated with and independent variable), the OLS estimators

are .

(a) biased and consistent.

(b) unbiased and inconsistent.

(c) biased and inconsistent. (d) unbiased and consistent.

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