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ECN225 Econometrics 2 2016 Past Paper Questions and Model Answers $5.15
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ECN225 Econometrics 2 2016 Past Paper Questions and Model Answers

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High-quality past paper questions and answers for the ECN225 Econometrics 2 module for the Queen Mary University of London Economics Course. Each question is reproduced and high-quality full-mark scores are written up clearly for each one. Great for preparing for exams, studying and solidifying you...

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  • January 20, 2020
  • May 26, 2020
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ECN225 Econometrics 2 – 2016
Questions and Answers

Question 1




a) Omitted-variable bias (OVB) occurs when a statistical model leaves out one or more relevant
variables. The bias results in the model attributing the effect of the missing variables to the
estimated effects of the included variables. This would occur if the missing variable is correlated with
both X and Y.

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