Question: Please help me with my economics problem. I don't know how to answer it In order to estimate the effect on wage of years of

Please help me with my economics problem. I don't know how to answer it

Please help me with my economics problem. I don't know how to

In order to estimate the effect on wage of years of schooling, researcher B analysed the dataset that researcher A collected in Question 3. Researcher B considers the following regression equation log(income); = Bo + Bieduc;+ .. + U; where educ; is years of schooling for individual / and ... includes additional terms associated with other characteristics in the dataset. When research B was carefully examining omitted factors in the error term Uj, she realised that unobserved factors such as motivation, and work_ethic, would determine the income level and be correlated with the variable of interest, educ;. If researcher B's conjecture regarding the unobserved factors is correct, then: Hint: see page 1 to page 13 of Lecture Note 4. The OLS estimator B 1 would not be computed. Ob. The OLS estimator B 1 would be biased. Oc. . The OLS estimator B 1 would suffer imperfect multicollinearity. Od. The OLS estimator B 1 would have a large standard error

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