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      Question

      Which of the following is true about

      Omission(Overfitted) and Inclusion(Underfitted) type of the specification error
      A In Omission and Inclusion, the estimates are biased Correct Answer Incorrect Answer
      B Omission leads to inconsistent estimates whereas in Inclusion estimates are consistent Correct Answer Incorrect Answer
      C The variance of estimates in Omission is biased whereas in Inclusion it is unbiased Correct Answer Incorrect Answer
      D Both (b) and (c) Correct Answer Incorrect Answer

      Solution

      The estimate is Omission is biased where it is unbiased in Inclusion Both (b) & (c) are correct.

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