The omitted-variable problem in statistical analysis occurs when

A. the demand for the product has not been stable over time.
B. excluded variables are correlated with explanatory variables that are included in the analysis.
C. the price of the product has been relatively unstable over time.
D. there is no uniform result because the accounted variables are not affected by changes in other variables.


Answer: B

Economics

You might also like to view...

All of the following represent advantages or disadvantages of partnership with a foreign firm except which one?

A) relatively low financial commitment B) immediate access to experienced agents C) complete control over operations D) a lack of control over operations

Economics

Long-run elasticity of supply is defined as:

a. percentage change in quantity demanded in the long run divided by percentage change in price. b. percentage change in price divided by percentage change in quantity demanded in the long run. c. percentage change in quantity supplied in the long run divided by percentage change in price. d. percentage change in price divided by percentage change in quantity demanded in the long run.

Economics

Explain why government, rather than private firms, is required for efficient mosquito eradication programs

Economics

What are the advantages of a tax system for pollution control?

Economics