Heteroskedasticity is a problem with the a. dependant variables b. independent v

ID: 1136526 • Letter: H

Question

Heteroskedasticity is a problem with the

a. dependant variables

b. independent vriables

c. the error term

d. the choice of variables and what has been ommitted

Does ommitting a variable in our regression always cause OMMITTED VARIABLE BIAS

a. Yes

b. “Yes, if the R^2 is low"

c. No

d. “Yes, if the R^2 is high"

Imperfect multicolinearity

a. affects the standard errors

b. affects the Y variable

c. affects the values of the X variable

d. requires the correlation between two variables to be either -1 or 1

1. Option c

2. Option a.

3. Option d.