The consequences of including irrelevant variables in an


The consequences of including irrelevant variables in an OLS regression model are

i) OLS estimates of coefficients on relevant variables are unbiased but their standard errors are biased

ii) OLS estimates of coefficients on relevant variables are unbiased and their standard errors are unbiased

iii) OLS estimates of coefficients on irrelevant variables are biased and their standard errors are unbiased

iv) OLS estimates of coefficients on irrelevant variables are unbiased and their standard errors are unbiased

Select one:

a. ii and iii

b. i

c. ii

 

d. ii and iv

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Microeconomics: The consequences of including irrelevant variables in an
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