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We have observations on random variables X, Y and Z, and we are interested in the relation between Y and X only. If we regress
We have observations on random variables X, Y and Z, and we are interested in the relation between Y and X only. If we regress Y on X, this model suffers from the omitted variable bias problem
a) if Z is correlated with Y but not necessarily with X
b) regardless of whether Z is correlated with X and/or Y
c) if Z is correlated with both X and Y
d) if Z is correlated with X but not necessarily with Y
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