The following OLS assumption is most likely violated by omitted variables bias:
A)E(ui Xi)= 0
B)(Xi,Yi)i=1,... ,n are i.i.d draws from their joint distribution
C)there are no outliers for Xi,ui
D)there is heteroskedasticity

Name: The following OLS assumption is most likely violated by omitted variables bias: A)E(ui Xi)= 0 B)(Xi,Yi)i=1,... ,n are i.i.d draws from their joint distribution C)there are no outliers for Xi,ui D)there is heteroskedasticity
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Question

The following OLS assumption is most likely violated by omitted variables bias:
A)E(ui Xi)= 0 
B)(Xi,Yi)i=1,... ,n are i.i.d draws from their joint distribution 
C)there are no outliers for Xi,ui 
D)there is heteroskedasticity

Quizplus · Accepted Answer

The Answer is A

The Following OLS Assumption Is Most Likely Violated by Omitted