Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following are true? In the univariate regression, Omitted variables bias in the slope coefficient is positive if... i) We have a small

Which of the following are true?

In the univariate regression, Omitted variables bias in the slope coefficient is positive if...

i) We have a small sample

ii) The omitted variable has no effect out the outcome but there is a positive correlation between the explanatory variable and omitted variable

iii) The slope coefficient estimate tends to be greater than the true slope coefficient

iv) The explanatory variable is positively correlated with the omitted variable and the omitted variable has a negative effect on the outcome.

v) We have insignificant coefficient estimates without the omitted variable

vi) The R^2 is close to 1

Vii) The omitted variable is uncorrelated with both the explanatory variable and the outcome

viii) The slope coefficient estimate tends to be lower than the true slope coefficient

viiii) The explanatory variable is positively correlated with the omitted variable and the omitted variable has a positive effect on the outcome.

x) The explanatory variable is negatively correlated with the omitted variable and the omitted variable has a negative effect on the outcome.

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

Mathematics In Middle And Secondary School A Problem Solving Approach

Authors: Alexander Karp, Nicholas Wasserman

1st Edition

1623968143, 9781623968144

More Books

Students also viewed these Mathematics questions

Question

List and discuss three advantages of budgeting. LO1

Answered: 1 week ago