Which of the following types of sampling always causes bias or inconsistency in the ordinary least squares estimators?
A)Random sampling
B)Exogenous sampling
C)Endogenous sampling
D)Stratified sampling

Question

Quizplus · Accepted Answer

Endogenous sampling can cause bias or inconsistency in the ordinary least squares estimators because it involves selecting individuals based on their values of the outcome variable or one of the predictor variables, which can create a correlation between the sample selection process and the errors in the regression model. This violates the assumption of exogeneity and can lead to biased or inconsistent coefficient estimates. Random sampling, stratified sampling, and exogenous sampling do not necessarily cause bias or inconsistency in the ordinary least squares estimators, as long as other assumptions of the regression model are met.

Which of the Following Types of Sampling Always Causes Bias