(Solved): (c) The omitted variable bias of the OLS estimator of the coefficient of a variable (included varia ...

(c) The omitted variable bias of the OLS estimator of the coefficient of a variable (included variable) when a relevant variable that is correlated with the included variable is omitted. In your answer you need to clearly define what the omitted variable bias is: that is, start with the definition of the omitted variable bias that is discussed in lecture. 1 True/False] Identify whether the following statements are true or false and oresent reasons why you believe so. (a) Positive regression coefficient of an independent variable implies that the sample covariance between the independent variable and the dependent variable is positive. (b) Suppose the variance of an estimator is $\frac{5}{n^2}$. Then if the estimator is unbiased, it is consistent. [You can use a graph to answer this]. (c) Suppose the true model includes two independent variables, but one independent variable is omitted. If the omitted variable is not correlated with the omitted variable, then there is no omitted variable bias.