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2. Which of the following will cause OLS estimators for a regression Наррiness = a Blncome +u to be biased? a) Income varies a lot in the sample. b) Optimistic disposition is in the unobservable u, which is correlated with the Income. c) Omit the intercept when its true value is not zero. d) Both b) and c)

2. Which of the following will cause OLS estimators for a regression Наррiness = a Blncome +u to be biased? a) Income varies a lot in the sample. b) Optimistic disposition is in the unobservable u, which is correlated with the Income. c) Omit the intercept when its true value is not zero. d) Both b) and c)

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.3: Measures Of Spread
Problem 1GP
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2. Which of the following will cause OLS estimators for a regression Наррiness = a Blncome +u to be biased? a) Income varies a lot in the sample. b) Optimistic disposition is in the unobservable u, which is correlated with the Income. c) Omit the intercept when its true value is not zero. d) Both b) and c)
Transcribed Image Text:2. Which of the following will cause OLS estimators for a regression Наррiness = a Blncome +u to be biased? a) Income varies a lot in the sample. b) Optimistic disposition is in the unobservable u, which is correlated with the Income. c) Omit the intercept when its true value is not zero. d) Both b) and c)
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