By including another variable in the regression,you will
A)decrease the regression R2 if that variable is important.
B)eliminate the possibility of omitted variable bias from excluding that variable.
C)look at the t-statistic of the coefficient of that variable and include the variable only if the coefficient is statistically significant at the 1% level.
D)decrease the variance of the estimator of the coefficients of interest.

Question

Quizplus · Accepted Answer

Including another variable in the regression eliminates the possibility of omitted variable bias from excluding that variable.

By Including Another Variable in the Regression,you Will