SOA Exam SRM Sample Question 71
Study guide: Exam SRM
Determine which of the following statements regarding the effect of omitting important variables from the regression model specification is NOT true.
- A) It will result in underfitting.
- B) It will increase the width of prediction intervals.
- C) The coefficient estimates will remain unbiased.
- D) The estimate of the variance,
s^2, is inflated. - E) The total sum of squares remains unchanged.
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