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.

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Definitions:

Mental Rehearses

The process of mentally practicing a task or envisioning a situation, often used as a technique to improve performance or prepare for specific scenarios.

Track Record

The accumulated history or performance data of an individual or entity, often indicating success or reliability over time.

New Tasks

Fresh or unaccustomed duties, activities, or challenges that are assigned or undertaken.

Continuous Record

An uninterrupted and consistently maintained documentation or log of events, transactions, or observations over time.