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True/False/Uncertain - Briefly explain. Omitted variable bias (OVB) occurs if the excluded variable is correlated with any of the included variables. The problem with over-fitting
True/False/Uncertain - Briefly explain.
- Omitted variable bias (OVB) occurs if the excluded variable is correlated with any of the included variables.
- The problem with over-fitting is imprecision.
- With 10 Xs, in the first step of both the forward and backward automatic search procedure, there are 10 regressions.
- If the confidence interval (CI) for the beta coefficient is (0.98, 1.17), one should fail to reject the null hypothesisH0:e= 1.
- A problem with the Linear Probability Model (LPM) is that/[0,1].
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