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Most of Chapter 6 Is Concerned with Specification Bias

Question 4

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Most of Chapter 6 is concerned with specification bias.
(a) What exactly is specification bias?
(b) What is known to cause specification bias?
(c) Are unbiased estimates always better than biased estimates? Why or why not?
(d) What's the best way to avoid specification bias?

Correct Answer:

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See Section 6.1. Note in particular tha...

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