In the following determining function, Earningsi = ?0 + ?1Educationi + Ui, what might be a factor contained in Ui?

A. Proximity to a 4-year college, which is known to not impact earnings
B. Heteroscedasticity
C. Innate ability, which might be correlated with education and earnings
D. Predictions of earnings


Answer: C

Biology & Microbiology

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