Logo
Home Study Material Contact Search
AI Chat FREE
  1. mathematics
  2. statistics
  3. suppose you are interested in understanding the ca

Suppose you are interested in understanding the causal impact of having an MBA (versus just an...

50.1K

Verified Solution

Question

Statistics

Suppose you are interested in understanding the causal impact ofhaving an MBA (versus just an undergraduate degree in business) onearnings.  To this end, you estimate a regression of thefollowing form:

EARNINGS = 55679 + 27809(MBA)

The estimated coefficient above suggests that individuals withan MBA earn $27,809 more than those with just a businessundergraduate, on average.  Give an example of howomitted variable bias might impact this estimate

Answer & Explanation Solved by verified expert
4.1 Ratings (739 Votes)
Let us take an example to understand this problem Let us assume that a person wants to buy a house and hence he decided to find out the factors tht determine the price of the houses in his    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

how could a kidney stone cause blood to appear in urine?

General Management
1.2K views

Chapter 11 Van Dalen Foods, a bakery chain located in Grand Rapids Michigan, provides baked goods for...

Accounting
1.2K views

Multiple-step income statement and balance sheet The following selected accounts and their current balances appear in the...

Biology
1.2K views

Minimum of three paragraphs about the Mauna Loa volcano

Biology
1.2K views

A protein that is specifically designed to fit certain pathogens and is actively involved in...

Calculus
1.2K views

Graph the following function Then use geometry not Riemann sums to find the area and...

Calculus
1.2K views

For each of the statements below state whether the statement is True and False otherwise...

Calculus
1.2K views

P I zx S G

Accounting
1.2K views

Imperial Jewelers manufactures and sells a gold bracelet for $408.00. The company's accounting system says...

Accounting
1.2K views

Miller Company's contribution format income statement for the most recent month is shown below Sales...

Accounting
1.2K views

Bank reconciliations and cash This question continues on from question 1 above. It is now...

Finance
1.2K views

Highland Mining and Minerals Co. is considering the purchase of two gold mines. Only one...