which of the following common violations results in biased coefficient estimates? Question 12 options: a) Endogeneity/Omitted Variables b) Heteroskedasticity or Changing Variability c) Nonlinear Patterns d) Multicollinearity
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Biased coefficient estimates occur when the estimated coefficients do not accurately reflect the true relationship between the independent and dependent variables in a regression model. Show more…
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a. Sample selection bias: a. Is only important for finite sample results b. Occurs when a selection process influences the availability of data and that process is related to the dependent variable c. Results in the OLS estimator being biased, although it is still consistent d. Is more important for non-linear least squares estimation than for OLS 2. Which of the following problems will not cause the endogeneity problem in a linear regression model? a. Omitting relevant variables b. Including irrelevant variables c. Errors in variables d. Simultaneous equations 3. The following is not a threat to external validity a. The treatment being studied is not representative of the treatment that would be implemented more broadly b. Experimental participants are volunteers c. The experimental sample is not representative of the population of interest d. Partial compliance with the treatment protocol 4. The conditions for valid instruments do not include the following: a. Perfect multicollinearity between the predicted endogenous variables and the exogenous variables must be ruled out b. Each one of the instrumental variables must be normally distributed c. Each instrument must be uncorrelated with the error term d. At least one of the instruments must enter the population regression of X and the Z's and the W's. 5. A study based on the OLS regressions is internally valid if: a. The errors are homoscedastic, and there are no more than two binary variables present among the regressors b. You use a two-sided alternative hypothesis and standard errors are calculated using the heteroskedasticity robust formula c. Weighted least squares produces similar results and the t-statistics is normally distributed in large samples d. The OLS estimator is unbiased and consistent and the standard errors are computed in a way that makes the confidence intervals have the desired confidence level 6. The following will not cause a correlation between X and u in the simple regression model: a. Irrelevance of the regressor b. Simultaneous causality c. Omitted variables d. Errors in variables 7. The distinction between endogenous and exogenous variables is a. Dependent on the distribution of the variables, i.e., when they are normally distributed, they are exogenous, otherwise, they are endogenous. b. Whether or not the variables are correlated with the error term c. That exogenous variables are determined inside the model and endogenous variables are determined outside of the model d. Dependent on the sample size, i.e., for n sufficiently large, endogenous variables become exogenous 8. The reliability of a study using a multiple regression analysis depends on all of the following with the exception of: a. Omitted variable bias b. External validity c. Presence of homoskedasticity in the error term d. Errors in variables
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Regardless of estimation accuracy, the OLS estimator cannot be computed at all if A) there is omitted variable B) there is endogeneity in the independent variables C) there is imperfect multicollinearity D) there is perfect multicollinearity
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If an independent variable in a multiple linear regression model is an exact linear combination of other independent variables, the model suffers from the problem of _____. A. an excessive number of observations B. omitted variable bias C. perfect collinearity D. homoscedasticity
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