2. 3. 4. 5. 6. Moving to another question will save this response. tion 5 common
ID: 2441695 • Letter: 2
Question
2. 3. 4. 5. 6. Moving to another question will save this response. tion 5 common cause of the association of the error terms and independent variables is the presence of a lurking variable. Choose the correct answer below. oThe statement is false because lurking variables are rare and they are usually accounted for if time series data is avalilable. ) The statement is true. The statement is false because lurking variables will usually cause the errors to be independent. ) The statement is false because lurking variables are accounted for in the regression model. Moving to another question will save this response.Explanation / Answer
1.
A common cause of association between error terms and independent varibles is the presence of a lurking variable. This statemnet is false because lurking variables are accounted for in the regression model. As the error maybe a result of correlation of dependent and one of the regressor or misspecification.
the correct option is (d)
2.
If researcher leaves out important regressors out of the regression equation it leads to omitted variable bias and estimates are not BLUE anymore.
the correct option is true.
3.
In the figure in part 4, the output A is not showing BLUE estimates as the sample mean is not the true estimate of the population mean.
the correct option is false
4.
Among the given points, figure B shows sampling distribution in which sample mean and true mean value is zero and mean of the sampling distribution is equal to the true value.
the correct option is (d)
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