Buan 6312 exam - Study guides, Class notes & Summaries

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BUAN 6312 Exam 2 Practice Questions and Answers
Exam (elaborations) • 5 pages • 2024

BUAN 6312 Exam 2 Practice Questions and Answers Endogeniety - ANSWER-Correlation between explanatory variable and error term Endogeniety causes the least squares estimator to be what? - ANSWER-Biased and inconsistent When what is correlated with the explanatory variable, the regression error will be correlated with the explanatory variable? - ANSWER-Omitted variable Instrumental variables have no effect on what? - ANSWER-Y Instrumental variables cannot be correlated with ___ but must be c...

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