If the estimates of the coefficients of interest change substantially across specifications,
A)then this can be expected from sample variation.
B)then you should change the scale of the variables to make the changes appear to be smaller.
C)then this often provides evidence that the original specification had omitted variable bias.
D)then choose the specification for which your coefficient of interest is most significant.

Question

Quizplus · Accepted Answer

If the estimates of the coefficients of interest change substantially across specifications, it often indicates the presence of omitted variable bias in the original specification. Therefore, it is necessary to re-evaluate the variables included in the model and identify any potential variables that were excluded but could affect the outcome. Only then, the revised specification can provide a more reliable estimate of the coefficient of interest.

If the Estimates of the Coefficients of Interest Change Substantially