Asked by Jackie Balarezo on Jul 27, 2024
Verified
Changes in one variable on a graph might be caused by the other variable on the graph or by a third omitted variable.
Omitted Variable
An Omitted Variable is a relevant variable that has been left out of a regression model, potentially leading to biased results.
- Recognize inaccuracies in causal relationships and prevalent errors in economic logic.
- Gain insight into the influence and connectivity of causations and correlations within economic factors.
Verified Answer
DM
Dimitri MaduroJul 27, 2024
Final Answer :
True
Explanation :
This statement reflects the concept of omitted variable bias, where the relationship between two variables in a study might be influenced by the presence of another variable not included in the analysis.
Learning Objectives
- Recognize inaccuracies in causal relationships and prevalent errors in economic logic.
- Gain insight into the influence and connectivity of causations and correlations within economic factors.