If you are using number of competitors as a control variable and the local unemployment rate as a proxy for economic climate in a regression to estimate the effect of price on sales, all the following variables will show up in the regression except for:
A) the number of competitors.
B) price.
C) economic climate.
D) sales.

Question

Quizplus · Accepted Answer

The local unemployment rate is used as a proxy for economic climate, so "economic climate" itself will not appear as a separate variable in the regression.

If You Are Using Number of Competitors as a Control