The OLS estimators of the coefficients in multiple regression will have omitted variable bias
A)only if an omitted determinant of Yi is a continuous variable.
B)if an omitted variable is correlated with at least one of the regressors,even though it is not a determinant of the dependent variable.
C)only if the omitted variable is not normally distributed.
D)if an omitted determinant of Yi is correlated with at least one of the regressors.

Question

Quizplus · Accepted Answer

Omitted variable bias occurs when there is a determinant of the dependent variable that is not included in the regression model and is also correlated with at least one of the regressors. Therefore, option D is the correct choice. The other options are incorrect as they do not accurately describe the conditions under which omitted variable bias occurs.

The OLS Estimators of the Coefficients in Multiple Regression Will