Question
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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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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