Question: Question 2 In order to estimate the effect on the wage of years of schooling, researcher B considers the following regression equation, log (income)

Question 2 In order to estimate the effect on the wage of

Question 2 In order to estimate the effect on the wage of years of schooling, researcher B considers the following regression equation, log (income) + educ,+...+u, 8 points Saved where educ, is years of school of individual / and... includes additional terms associated with other characteristics in the dataset. When researcher B was carefully examining omitted factors in the error term up, she realized 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 the OLS estimator O a, cannot be computed. b. would have a large standard error. Oc. would overestimate the effect on the income of education. O d. would suffer imperfect multicollinearity.

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