45. An analyst estimates the model Y = B1 + B1X1 + B2 X2 + B3X3+ u using OLS. But the true B3 = 0. In this case, by including X3 A. there is no harm done as all the estimates would be unbiased and efficient B. there is a problem because all the estimates would be biased and inconsistent C. the estimates would be unbiased but would have larger standard errors D. the estimates may be biased but they would still be efficient

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A: Solution

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A: The formula of standard deviation is:

Q: Name two limitations of this test.

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