Omitting relevant variable from a regression model

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Reference no: EM13887009

For each of the following statements, answer “agree” or “disagree,” and provide justification.

(i) “Omitting a relevant variable from a regression model generally causes bias in the OLS estimators.”

(ii) “Because the OLS estimators are unbiased under Assumptions SLR.1 to SLR.4, the residuals are always equal to the errors: uˆ u ,i 1,...,n. i = i =

(iii) “If the R-squared from a simple regression is less than .50, the OLS estimators are probably biased.”

Reference no: EM13887009

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