One is curious about the relationship between wage and experience. Suppose that wage increases with experience, but at a decreasing rate. If you estimate the following regression using OLS: wage = Bo + Bjexperience + u, the estimator for B, is O a) biased and inconsistent O b) unbiased and consistent O c) biased and consistent O d) unbiased and inconsistent Question 22 You are interested in the relationship between crime rate and police expenditure at a state level. Suppose that states tend to increase budgets for police expenditure in response to high crime rates. If you run the following regression using OLS: crime = Bo + Biexpenditure + u, you are faced with which of the following threats to internal validity? O There is no threat to internal validity in this case. O Simultaneous causality O Sample selection bias Misspecification of the functional form

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A:

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A: 514+16=15+742

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A: -83

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