Question: Omitted variable bias a threat to external validity. Consider the following population regression equation Y = B. +B,X;+; where Bo and B, denote the intercept

Omitted variable bias a threat to external

Omitted variable bias a threat to external validity. Consider the following population regression equation Y = B. +B,X;+; where Bo and B, denote the intercept and slope coefficient, respectively. Let , and , denote the estimated intercept and the estimated slope coefficient, respectively. A measurement error in Yi result in an errors-in-variables bias. Suppose that simultaneous equations bias arises in the following set of equations. Y = Bo+B,X;+u; X = Yo + r1Y; + V; Which of the following statements are correct? (Check all that apply.) A. X; is correlated with u; B. Yn is correlated with B, C. u; is correlated with vi D. Y is correlated with vi

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