Suppose you have estimated the following regression: Refrigerator Sales_i = β₀ + β₁Price_i + U_i. However, when presenting your results, someone in the audience claims your estimate is biased because your sample only contains sales figures for refrigerators that are priced over $300. Their point is: A) correct. You have a selected sample on the Y variable, so your estimate is biased. B) correct. You have a selected sample on the X variable, so your estimate is biased. C) incorrect. You have a selected sample on Y variable, but this does not bias your estimate. D) incorrect. You have a selected sample on X variable, but this does not bias your estimate.

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The Answer of Suppose you have estimated the following regression: Refrigerator Sales_i = β₀ + β₁Price_i + U_i. However, when presenting your results, someone in the audience claims your estimate is biased because your sample only contains sales figures for refrigerators that are priced over $300. Their point is: A) correct. You have a selected sample on the Y variable, so your estimate is biased. B) correct. You have a selected sample on the X variable, so your estimate is biased. C) incorrect. You have a selected sample on Y variable, but this does not bias your estimate. D) incorrect. You have a selected sample on X variable, but this does not bias your estimate.

Suppose You Have Estimated the Following Regression: Refrigerator Salesi =

Suppose You Have Estimated the Following Regression: Refrigerator Sales_i =