In a two regressor regression model, if you exclude one of the relevant variables then
A) it is no longer reasonable to assume that the errors are homoskedastic.
B) OLS is no longer unbiased, but still consistent.
C) you are no longer controlling for the influence of the other variable.
D) the OLS estimator no longer exists.
Ans: C) you are no longer controlling for the influence of the other variable.
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The figure below represents the marginal cost of abatement for two firms. If a tax of $4 per unit of pollution were placed on the firms, the total amount of pollution that the two firms would reduce would be
A) 9 units. B) 8 units. C) 6 units. D) 7 units.
If TR > TVC but TR < TC, a firm would ________ in the short run and ________ in the long run.
A. operate; expand B. shut down; expand C. shut down; exit the industry D. operate; exit the industry
All of the following location characteristics can result in higher worker salaries except which one?
A) unpleasant work conditions B) poor climate C) low cost of living D) long commute time
Phyllis spends her income on beer and pretzels, and a six pack of beer costs the same as a bag of pretzels. If she is in consumer equilibrium, we know: a. she buys the same quantities of six packs of beer and bags of pretzels
b. she gets the same marginal utility from the last six pack of beer as from the last bag of pretzels. c. she gets the same total utility from beer as she does from pretzels. d. that all of the above are true.