In the Case of Errors-In-Variables Bias

question 37

Multiple Choice

In the case of errors-in-variables bias,

• A)maximum likelihood estimation must be used.
• B)the OLS estimator is consistent if the variance in the unobservable variable is relatively large compared to variance in the measurement error.
• C)the OLS estimator is consistent, but no longer unbiased in small samples.
• D)binary variables should not be used as independent variables.

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Definitions:

Buck's Traction

A form of skin traction used in orthopedics to immobilize a part of the body, such as a fractured leg, to relieve muscle spasms and align bones.

Hypnagogic Phenomenon

Sensory experiences that occur at the onset of sleep, which may include seeing or hearing things that are not there.

Illusion

A false perception or misinterpretation of a real sensory stimulus.

Chronic Low Self-Esteem

A persistent feeling of inadequacy or lack of confidence in one's own abilities or worth.