Answer:
C. can cause hypothesis tests to be unreliable
Explanation:
Omitted variables are those variables that, when left out of a statistical model, for example linear regression, affects the outcome of the model. It either ignores the impact of the omitted variable to the results or it may assign the effect of the omitted variable incorrectly to the effect of the included variable on the statisical model. This of courses results in the model depicting an upward bias or a downward bias. This is referred to as the Omitted Variable Bias (OVB).
Lets take an example. If you were to run multiple regressions to figure out the factors that affect the prices of houses in an area, you would include multiple variables that you deem significant. The variables you would include in the regression model would include the age of the house, the size of the house, the number of rooms and so on and so forth. However, lets assume that some of the houses are located near an industrial waste plant which negatively impact the price of the house. You forget to include thos proximity variable in your model which would likely make your model biased since the proximity to a waste plant would drastically impact the price of a house that is similar in all aspects with a house that is located further away.
Furthermore, the aren't any statistical models that would located omitted variables therefore, in the context of the question, omitted variables can cause hypothesis tests to be unreliable
Answer:
<em><u>Elasticity is an important economic measure, particularly for the sellers of goods or services, because it indicates how much of a good or service buyers consume when the price changes. When a product is elastic, a change in price quickly results in a change in the quantity demanded.</u></em><em><u>The concept of elasticity for demand is of great importance for determining prices of various factors of production. Factors of production are paid according to their elasticity of demand. In other words, if the demand of a factor is inelastic, its price will be high and if it is elastic, its price will be low.</u></em>
Explanation:
hope it helped you...mate!
Answer:
Leased Fee Interest
Explanation:
Leased Fee Interest refers to the right of the lessor to lease his property to a tenant and earn rental income in addition to the value of the asset which is reverted back to the lessor upon expiry i.e reversionary right.
The total of leased rental payments and reversionary value is termed as Leased Fee Interest.
A lease is a contract wherein one party i.e the lessor agrees to lend the asset to other party i.e the lessee in exchange of periodic payments in the form of lease rentals usually without transferring the ownership of the asset.