Possible solutions to omitted variable bias, when the omitted variable is not observed, include the following with the exception of
A)panel data estimation.
B)nonlinear least squares estimation.
C)use of instrumental variables regressions.
D)use of randomized controlled experiments.

Question

Quizplus · Accepted Answer

Nonlinear least squares estimation does not specifically address the issue of omitted variable bias, especially when the omitted variable is not observed. It is a method used for estimating the parameters in a nonlinear model but does not inherently correct for the bias caused by omitting relevant variables. In contrast, panel data estimation, instrumental variables regressions, and randomized controlled experiments are methods that can help address or mitigate omitted variable bias.

Possible Solutions to Omitted Variable Bias, When the Omitted Variable