Errors-In-Variables Bias
A)is Present When the Probability Limit of the OLS

question 36

Multiple Choice

Errors-in-variables bias

• A)is present when the probability limit of the OLS estimator is given by
• \[\hat { \beta } _ { 1 } \rightarrow \beta _ { 1 } + \frac { \sigma _ { x } ^ { 2 } } { \sigma _ { x } ^ { 2 } + \sigma _ { w } ^ { 2 } }\]
• B)arises when an independent variable is measured imprecisely.
• C)arises when the dependent variable is measured imprecisely.
• D)always occurs in economics since economic data is never precisely measured.

---

Definitions:

Team Builder

An individual or activity that focuses on creating and strengthening bonds between team members to enhance cooperation and team performance.

Technical Problem

An issue related to the practical aspects of technology, machinery, or systems requiring specific technical knowledge to solve.

Substitutes For Leadership

Factors in the work environment that reduce the need for a leader's direct involvement by providing guidance and motivation to members.

Work Setting

The physical and social environment in which people perform their jobs, including factors like the workspace layout, organizational culture, and job roles.