What are the consequences of omitting a relevant variable(s) from a model?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 80% (10 reviews)
If a variables is wrongly excluded from a model the coefficients of ...View the full answer
Answered By
Geoffrey Isaboke
I am an industrious tutor with a 5-yr experience in professional academic writing. I have passion for History and Music and I have good knowledge in Economics
5.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Econometric questions
-
Carpetland salespersons average $8,000 per week in sales. Steve Contois, the firms vice president, proposes a compensation plan with new selling incentives. Steve hopes that the results of a trial...
-
Suppose a new production method will be implemented if a hypothesis test supports the conclusion that the new method reduces the mean operating cost per hour. a. State the appropriate null and...
-
A new drug can be an expensive process, resulting in high costs to patients. A pharmaceutical company has developed a new drug to reduce cholesterol, and it will conduct a clinical trial to compare...
-
Why do most cities in the United States now have more radios but fewer radio repair shops than they did in 1960?
-
Water Emporium issues $20 million of 4% convertible bonds that mature in 10 years. Each $1,000 bond is convertible into 20 shares of common stock. The current market price of Water Emporium stock is...
-
Find the domains of the following vector-valued functions. r(t) = 4-fi + Vtj - V4 2 VI + t k
-
Pam Corporation owns 75 percent of the voting common stock of Sun Corporation, acquired at book value during 2016. Selected information from the accounts of Pam and Sun for 2017 are as follows: Pam...
-
Description of Patient: Sarah came to our clinic with mixed feelings about whether she needed help. On the one hand, she had been experiencing deep feelings of sadness accompanied by fatigue,...
-
(15 points) Star Hollow Company has 20,000 authorized shares of common stock, $2 par, and also 20,000 authorized shares of preferred stock, $10 par. Required: Record journal entries for the following...
-
According to a study several years ago by the Personal Communications Industry Association, the average cell phone user earns $62,600 per year. Suppose a researcher believes that the average annual...
-
What are the attributes of a "good" econometric model?
-
When we say that a variable is "relevant" or "irrelevant," what do we mean?
-
The variation of the spectral absorptivity of a surface is as given in Fig. P2144. Determine the average absorptivity and reflectivity of the surface for radiation that originates from a source at T...
-
From Hoffman, what are the symptoms of autism and ADHD? From the Mayo Clinic, what are the causes and risk factors for autism and ADHD? What are treatment options for these disorders? Hofmann, S. G....
-
Brooks, a participant in the Zappa retirement plan, has requested a second plan loan. His vested account balance is $80,000. Brooks borrowed $27,000 eight months ago and still owes $18,000 on that...
-
Suppose that Angelina and Brad own the only two professional photography stores in town. Each must choose between a low price and a high price for senior photo packages. The annual economic profit...
-
based on the article How Chili's Is Prepping for Tough Times, Starting With the Fries by Heather Haddon. What is corporate social responsibility, and what is one way that Chili's can better pursue...
-
QUESTION 2 (20 marks) CLO 5 a. Explain what the following ratios indicate to a firm: (i) Acid Test Ratio (ii) Return on Capital Employed (ROCE) (iii) Debtors Collection Period (iv) Working Capital (2...
-
Estimate the viscosity of toluene at 80 C, using the value at 20 C given in Example 8.2. Data from Example 8.2 Estimate the viscosity of toluene at 20 C.
-
10m solution. If Ka(HA) = 10 then pOH of solution will be [Given : log4=0.6] (A) 6.7 (B) Greater than 6.7 & less than 7.0 (C) Greater 7.0 & less than 7.3 (D) Greater than 7.3
-
Use CRIME4.RAW for this exercise. (i) Reestimate the unobserved effects model for crime in Example 13.9 but use fixed effects rather than differencing. Are there any notable sign or magnitude changes...
-
For this exercise, we use JTRAIN.RAW to determine the effect of the job training grant on hours of job training per employee. The basic model for the three years is (i) Estimate the equation using...
-
In Example 13.8, we used the unemployment claims data from Papke (1994) to estimate the effect of enterprise zones on unemployment claims. Papke also uses a model that allows each city to have its...
-
1. (A nice inharitage) Suppose $1 were invested in 1776 at 3.3% interest compounded yearly a) Approximatelly how much would that investment be worth today: $1,000, $10,000, $100,000, or $1,000,000?...
-
Why Should not the government subsidize home buyers who make less than $120K per year. please explain this statement
-
Entries for equity investments: 20%50% ownership On January 6, 20Y8, Bulldog Co. purchased 25% of the outstanding common stock of $159,000. Gator Co. paid total dividends of $20,700 to all...
Study smarter with the SolutionInn App