Practice_Questions_Chapter6

they are biased upward and have larger standard

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Unformatted text preview: t reduces the variance of estimated coefficients without introducing bias b.) it allows more precise hypotheses testing to be done c.) it reduces the degrees of freedom in the denominator of an F- test d.) It reduces the probability of rejecting a true null hypothesis Ans: a Section: 6.2 9. How does omitting a relevant variable from a regression model affect the estimated coefficient of other variables in the model? a.) they are biased downward and have smaller standard errors b.) they are biased upward and have larger standard errors c.) they are biased and the bias can be negative or positive d.) they a...
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This note was uploaded on 02/20/2013 for the course ECON 103 taught by Professor Sandrablack during the Fall '07 term at UCLA.

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