Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The presence of omitted variables calls into question the use of a simple linear regression model y=_0+_1 x+u unless one uses homogenous subsamples as a

The presence of omitted variables calls into question the use of a simple linear regression model y=_0+_1 x+u unless one uses homogenous subsamples as a means of controlling for other variables. So, in a wage equation where the focus is on the impact of education, the sample could be restricted say to females with the same occupation and level of experience.

Is this true, false or not certain? Why?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Mathematics questions