Omission of an important independent variable from a multiple regression model tends to bias estimates.

Name: Omission of an important independent variable from a multiple regression model tends to bias estimates.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Omitting an important independent variable from a regression model can lead to biased estimates of the coefficients for the included variables, as the omitted variable may be correlated with both the dependent variable and the included independent variables, causing omitted variable bias.

Omission of an Important Independent Variable from a Multiple Regression