In a two regressor regression model, if you exclude one of the relevant variables then
A)it is no longer reasonable to assume that the errors are homoskedastic.
B)OLS is no longer unbiased, but still consistent.
C)you are no longer controlling for the influence of the other variable.
D)the OLS estimator no longer exists.

Question

Quizplus · Accepted Answer

If you exclude one of the relevant variables, you are no longer controlling for its influence, meaning that its effect on the dependent variable is not being taken into account. This can lead to biased estimates of the coefficients of the remaining variables. Therefore, it is important to include all relevant variables in the model to control for their effects.

In a Two Regressor Regression Model, If You Exclude One