A researcher is commissioned by a policy maker to conduct an empirical investigation. The researcher needs...

 

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A researcher is commissioned by a policy maker to conduct an empirical investigation. The researcher needs to collect data and hence asks the policy maker for a grant. After the grant application is approved the researcher demands for more financial support to collect more data and increase its sample size. The researcher claims that the advantage of a bigger sample size is removing the bias from estimation. a) Explain what omitted variable bias is. [5 marks] b) Based on what you learnt in this module, do you agree or disagree with the researcher's claim that "bigger sample size removed the omitted variable bias". Discuss. [10 marks] A researcher is commissioned by a policy maker to conduct an empirical investigation. The researcher needs to collect data and hence asks the policy maker for a grant. After the grant application is approved the researcher demands for more financial support to collect more data and increase its sample size. The researcher claims that the advantage of a bigger sample size is removing the bias from estimation. a) Explain what omitted variable bias is. [5 marks] b) Based on what you learnt in this module, do you agree or disagree with the researcher's claim that "bigger sample size removed the omitted variable bias". Discuss. [10 marks]

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Question 1 Omitted variable bias refers to a bias that occurs in a study that results in the omissio... View the full answer